As this week begins Bitcoin (BTC) rose over $30,000 during Asian trading hours, a brief show of resilience amid a record losing skid, according to data.
For the first time in its history, the asset has dropped for nine weeks in a row, falling from $48,160 in late March to $29,600 last week. The downturn coincided with fears about inflation in the larger economy, a shift away from risky assets, and systemic danger within the crypto business.
According to price charts, bitcoin found firm support at $29,000, a level that has been tested multiple times in recent weeks. Charts imply that if the cryptocurrency closes below this level, it might collapse to its 2017 high of around $20,000. However, resistance at $30,500 remains in place, and daily closing above that level would signal a strong comeback.
The Relative Strength Index (RSI), a metric used by traders to calculate the size of an asset’s price movements, has dropped to roughly 30, indicating that the market is nearing a bottom. This week’s momentum could be boosted by short-term buyers. Last week’s sentiment data indicates that the market may be bound for higher prices in the coming weeks.
According to some analysts, investors will continue to evaluate price activity before deploying capital.
“In an email, Simon Peters, market analyst at eToro, said, “US markets had a minor rebound last week with stocks climbing across the board.” “Although crypto did not enjoy the same recovery, prices in key cryptos such as bitcoin have currently been holding stable, implying a ‘quiet’ of sorts before any new commitment to the sector is made by huge players.”
Following months of rigorous lockdowns, Asian equities have begun to lift coronavirus restrictions, resulting in Monday’s rally. Traders are betting that the economy’s reopening would lead to a surge in consumer spending, which will boost firm revenues in the coming weeks and signal a bottom for the region’s stocks.
On Monday, the Asia Dow index gained 2.15 percent, while the Hang Seng index in Hong Kong gained 2.06 percent. The Nikkei 225 in Japan rose 2.19 percent, while European indices like the Stoxx 600 and the DAX have gained at least 0.82 percent since Monday’s opening. Futures in the United States climbed, with the Nasdaq 100 rising 1.44 percent and the S& P500 rising 1.08 percent However, other analysts believe that a bitcoin rebound may take longer than projected.
“It will be premature to talk about a positive surprise attack until bitcoin gets over $30,600, its horizontal resistance line since mid-May,” Alex Kuptsikevich, senior market analyst at Fx Pro, noted. “Global markets have regained their risk appetite, fueling prospects of a rebound.”
“Last week, there was clear divergence inequities and cryptocurrency dynamics, underscoring the crypto market’s vulnerability,” Kuptsikevich noted.
