Bitcoin Briefly Recovers as Holders Maintain Positivity on Further Rise

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Bitcoin
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.

Adam Robertson

Adam is outgoing young lad who likes adventures and discovering new things. Despite his boring life, He loves writing about cryptocurrencies and exploring what blockchain technology can do for the coming digital world where all adventures will be virtual.