Bitcoin Briefly Recovers as Holders Maintain Positivity on Further Rise
Bitcoin briefly recovered above the $30,000 level and its 100-hour simple moving average. The top crypto by market capitalization has had a rough past week as its price nosedived below the $25K level, causing panic across the crypto market.
BTC Holders are Speculating a BTC Rise
The entire market is recovering, with the global crypto market cap at $1.30T, a 2.82% increase over the last day. On the other hand, the total crypto market volume stands at $80.18B, a 5% decrease.
Despite the collapse of UST and Terra, crypto enthusiasts still have hope for crypto. BTC netflow across all exchanges has reached an 8-month low today, according to CryptoQuant data. It indicates that BTC reserves are increasing and hence buying pressure. Whenever there is buying pressure, it shows that many traders are speculating a bullish market.
Meanwhile, long positions on BTC whales on Bitfinex are at their all-time high. It is an indication that the holders are hoping for a price increase at a specific time hence the choice not to sell.
According to a popular crypto analyst, experienced traders build long positions on the current BTC price. “
Might be tempting to capitulate to the siren song of bearish influencers after last week’s rout. But find courage in the fact that every person I know who has made nine figures or more from this space adds to longs in this move down.”
BTC Will Face Hurdles on its Rise
After falling below the $25,000 support zone, the Bitcoin price started to bounce back. It moved above the $28,000 level and is on the verge of gaining more price ground. Despite falling below the $30,000 support zone, bulls were able to push the price above the $31,000 level. However, they failed to maintain the high, and BTC’s price went lower.
Bitcoin fell below the 23.6% Fib level of the upward move from its previous swing low of around $28,600 to $31,390. It is now approaching the support of approximately $30,400. On the hourly chart of the Bitcoin/USD pair, the critical support level is at around $30,400. The next significant support is around the $30,000 zone.
If the price breaks below the $30,000 support, it could trigger a major decline to the next support level at $29,000. The next significant support is also around $28,000, which could act as a support for a potential new wave of weakness.
What Happens to Bitcoin Next?
If bitcoin breaks through the $30,000 support zone, it could trigger a fresh rise. An immediate resistance level that can be observed is around $31,000.
The next major resistance level is around $31,400. A clear move above this level could trigger a fresh rise in the price to $33,000. The next resistance level is approximately $32,500. A move above this level could also rise to $33,000.
Altcoins are Also Recovering
Meanwhile, altcoins are recovering. Ethereum is trading at $2,052.19, 1% higher than yesterday. Cardano (ADA) is up by 8 percent at $0.6, Algorand (ALGO) is trading with a gain of 1 percent at $0.46, Solana (SOL) is trading with a considerable gain of 7 percent at $55, Monero(XMR) is up by 6 percent at $165. Binance Coin (BNB) was up by 2 percent at $297.
SafeFloki (SFK), up by 519.29 percent today at $0.0000000001129, was the top gainer for the day. Ballswap(BSP) lost the most, falling by 94.73 percent to $0.00001315.
