Bitcoin rose 11% in the past 24 hours, less than the 13% jump in ETH and 20% rise in NEAR.
Bitcoin (BTC) and other cryptocurrencies rallied on Friday, reversing losses from a few days ago. Alternative cryptocurrencies (altcoins) outperformed as ether (ETH), the world’s second-largest cryptocurrency, gained 13% over the past 24 hours compared with an 11% rise in BTC.
NEAR, the token associated with Near Protocol, a layer one blockchain that aims to overcome the limitations of its competitors including slow transaction rates, surged as much as 20% in the past 24 hours.
The rise in altcoins relative to bitcoin could reflect a greater appetite for risk among crypto investors.
“Since late last year, there has been a continuing trend that even bitcoin’s calming is enough for altcoins to return to growth and outperform the first cryptocurrency,” an analyst at FxPro, wrote in an email to CoinDesk.
Technical indicators point to additional price gains for bitcoin if buyers are able to maintain support above $37,000 over the weekend. Further, a decisive move above $40,000 could signal the start of a recovery phase.
Over the past few weeks, several indicators such as the bitcoin Fear & Greed Index, relative strength index (RSI) and a six-month high in the bitcoin options put/call ratio signaled bearish extremes in the crypto market.
Some analysts expect crypto buyers to return, similar to what occurred after the July 2020 price bottom at $28,000 BTC.