Bitcoin (BTC) Claws Back To $20,000, First Time In 5 Days


Bitcoin (BTC) surged 5% to regain the $20,000 region as the July 4th hype delivered a surprise gain. Tuesday saw a comeback in the cryptocurrency market, with the majority of tokens trading in the green.

Bitcoin’s rally on Tuesday marked the currency’s first in five days, with the daily 4th of July candle approaching the close, providing some dose of optimism in a bleak bear market.

Bitcoin and other cryptocurrencies remained virtually unchanged on Monday, with the crypto asset trading at lower prices after a massive sell-off in recent months.

The worldwide cryptocurrency market cap was trading at $909 billion, up more than 6 percent in the past 24 hours. However, the total volume of cryptocurrency trading increased by almost 37% to reach $55 billion.

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Bitcoin regains $20,000 of land

TradingView data indicated that the BTC/USD pair rose to $20,085 on Tuesday, its strongest gain since June 30. The pair spent most of the weekend near $19,000 as the bulls tried to push BTC price to $20,000.

After a turbulent second quarter, bitcoin price entered the third quarter in slow motion as it continues to consolidate around the $20,000 mark.

Since the start of 2022, heightened geopolitical concerns and a shift in sentiment (caused by price increases, the conflict in Ukraine, and dismal economic prospects) have dealt a blow to crypto assets, causing Bitcoin to return to levels last seen in December 2020.

BTC continues to trade less than a third of its all-time high of $69,000 reached in November of last year, but has maintained its position above $18,000, the lowest it touched during liquidations in mid-June.

BTC total market cap at $376 billion on the daily chart | Source: TradingView.com

BTC needed to cross $19,000

Despite the negative trends, Bitcoin managed to recover and cross the $19,000 threshold.

According to famed analyst Matthew Hyland, Bitcoin has succeeded in “creating a bullish divergence on the daily time frame for the first time since the break below $20,000.”

On-chain analytics resource Whalemap verified that whales buying tokens at $19,200 gave the market a sigh of relief.

Suggest reading | Ethereum (ETH) drops to $950 as crypto selloff deepens

According to Santiment’s statistics, a large number of Bitcoin long positions opened on cryptocurrency exchanges on July 4th, fueling the optimism of traders.

Traders of the United States, one of the largest markets, are now placing big bets on the continued rise of Bitcoin.

Meanwhile, some crypto investors who remain long-term Bitcoin bulls expect the leading cryptocurrency to require a one- or two-year accumulation cycle for the next BTC halving before the leading crypto can truly bounce back and hit new highs.

Featured image from 123RF, chart from TradingView.com



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