Bitcoin Has Shot Back Above $30,0002 min readReading Time: 2 minutes
Bitcoin has shot up at the time of writing. The world’s number one digital currency – which just a few weeks ago was trading in the mid-$20,000 range and suffering like no other coin – is now back above $31,000 which isn’t much, though many analysts are breaking out the champagne and looking at the maneuver as a solid step in the right direction.
Bitcoin Is Moving Up the Ladder
Several traders and analysts are pointing this as a potential sign that the bear market is over or at least that bitcoin has bottomed out. The world’s number one digital asset has been suffering from a string of dips in recent weeks that ultimately saw it lose virtually all its 2021 gains, a year that brought quite a bit of fame and fortune to the leader of digital currencies.
By the end of that year, the digital asset was trading for about $68,000 per unit – a new all-time high – though 2022 has shown itself to be a near repeat of 2018, which up until this point, has been considered one of the worst – if not the worst – year for digital currency.
Marcus Sotiriou – an analyst at digital asset broker Global Block – explained in an interview:
Bitcoin broke above $30,000, but it needs to hold the $29,300 level on a retest to suggest continuation to the upside. Relief has been long overdue in the crypto market, as the US stock market already rallied last week, after [US federal reserve head] Jerome Powell’s speech that gave the market clarity on their plans to carry out a soft economic landing.
Despite the good news that bitcoin appears to be on the rise yet again, some investors are not eager to simply jump into a full attitude of positivity just yet. Tony Sycamore – a market analyst at City Index – is advising his customers to remain cautious and to have attitudes of mild bullishness rather than simply going all in. He stated:
Technically, we remain cautiously short-term bullish. Bitcoin is looking towards $36,000, possibly $40,000, providing it remains above the recent $25,400 low.
Other industry heads shared this attitude of caution. Noelle Acheson – head of market insights at Genesis Global – mentioned:
There are still strong economic headwinds in the form of higher-than-expected inflation in Europe, the oil price heading up and the beginning of US QT tomorrow, and although the correlations are easing, crypto is not totally decoupled from macro yet.
Should Traders Be Careful?
Laurent Kssis – managing director and head of Europe at crypto exchange firm Hashdex – stated:
Old hands as well as venture capitalists have substantially reduced their bitcoin exposure and investment spending, and there seems to be a dormant volume flow hanging which could stay for the whole summer. I still see a trading range in the $30K level which could break as downward pressure is still compromised.