Bitcoin reached a new 18-month low of $17.5K on Sunday before quickly recovering above $20K in the hours that followed, providing some relief to a deeply volatile bear market.
According to data from CoinMarketCap, Bitcoin has rebounded just over 15 percent in the past 24 hours, rising from a disappointing low to $20,482 at the time of writing.
Bitcoin is currently pushing the all-time high range of 2017 from $17K to $20K and is constantly chasing lower prices, indicating excessive pressure from the seller.
Suggest reading | Bitcoin (BTC) Drops Below $18,000 – What Can Avoid Selling?
Bitcoin price dropped to $17,677.42 on Saturday before recovering to $18,290.74. After Tesla CEO Elon Musk tweeted that he is now buying prank coin Dogecoin, the most sought-after crypto asset has extended its recovery.
After saying on Twitter that he would “continue to support Dogecoin,” the price of the popular cryptocurrency rose 8% to $0.058 on Monday.
I will continue to support Dogecoin
– Elon Musk June 19, 2022
In response to Musk’s tweet, one user suggested that if he really believed in the “prank” coin, he should buy it. “I exist,” replied the billionaire, indicating that he was buying the drop.
By dropping below $20,000, BTC unleashed market trends that analysts say could lead to a wave of forced selling. Major investors in both cryptocurrencies will be forced to close positions on BTC and ETH derivatives in such a scenario.
Bitcoin and Ether make up just over half of the cryptocurrency market cap, which fluctuates a lot. In the previous hour, the entire cryptocurrency market had grown by 3.7% to $972 billion.
BTC total market cap at $381 billion on the daily chart | Source: TradingView.com
Bitcoin lost 30% of its value while Ether fell 31% over the previous week. Bitcoin is down 72 percent from its all-time high of $69,044.77 on November 10, while Ether is down 78 percent from its all-time high of $4,878.26 on the same day.
Andrew Brenner, head of international fixed income at National Alliance Securities, said Monday that retail investors who took in bitcoin over the weekend, when a few professional traders were active, were likely the reason why bitcoin regained some spark.
Bitcoin has paused a selloff that, according to some market analysts, could push the world’s largest cryptocurrency to $13,800 in the current bear market by climbing above $20,000.
Featured image from TDK Corporation, chart from TradingView.com