Bitcoin Regains Some Luster With 15% Rally To $21,700


Bitcoin may have some positive vibes in the coming days.

After a disastrous crash last week that slashed more than 30 percent of the value of prominent cryptocurrencies, including bitcoin, the broader crypto markets have made a modest comeback.

After a sharp drop, the price of Bitcoin settled at $17,000, a far cry from its all-time peak in November last year. According to experts, this price range is an important support area for the cryptocurrency.

Coingecko stats released on Sunday show that Bitcoin (BTC) has gained more than 14% over the past week, trading at $21,700 at the time of writing.

Suggest reading | Sandbox (SAND) has exploded 20% over the past 24 hours after ‘acquisition’ rumors

Bitcoin is getting a good dose of optimism

Bitcoin surged beyond the upper end of its trading range on Friday as optimism once again settled in traders’ expectations.

Since Wednesday, when it fell below $20,000, the BTC/USD pair has rallied, while US markets have calmed down ahead of the weekend.

Earlier this month, the leading cryptocurrency by market cap fell below $17,600 due to heavy selling pressure. According to CoinGecko data, Bitcoin is down as much as 69% from its all-time high.

Bitcoin mining difficulty hit its second biggest drop of 2022 on Thursday.

Bitcoin’s decline paused after a quick drop from $32,000 following the breakout of the bearish flag. The coin’s ATH zone between $17K and $20K provides a stable basis, leading to a rebound in the price towards $24K and possibly the major resistance at $30K.

BTC total market cap at $409 billion on the weekend chart | Source: TradingView.com

Meanwhile, Bitcoin’s focus on Sunday was $21,000 despite warnings that volatility could rock the market ahead of Monday.

BTC/USD trading in a higher range

After US stocks finished the week in good shape, TradingView data indicated that BTC/USD was trading in a higher range overall.

As market observer Holger Zschaepitz explained, the S&P 500 completed its second best week of 2022, indicating a slight improvement in risky assets.

Bitcoin bid is set at 21 million coins. However, the total supply of Bitcoin is just over 19 million, with 2 million left to be mined.

Suggest reading | Storj (STORJ) – a relatively unparalleled cryptocurrency – tops the gainers with 30%

Institutional acceptance of Bitcoin is growing, and more institutions are seeking to add Bitcoin exposure to their balance sheets. This indicates that supplies will become more restricted in the future.

According to the central bank chief, the Federal Reserve is keeping a close eye on the cryptocurrency industry but is not worried.

Federal Reserve Chairman Jerome Powell told a Senate committee that the central bank does not see any “macroeconomic implications” from Bitcoin and the dramatic price swings in the larger cryptocurrency market, but that stronger regulation is still necessary.

Featured image from Watcher Guru, chart from TradingView.com



Leave a Comment

Your email address will not be published.