Bitcoin (BTC), which gained 5.6% over the last 24 hours, climbed above $30,000 during Asian trading hours Monday in a brief showing of strength amid a losing streak record.
For the first time ever, the asset has fallen for nine consecutive weeks. It fell from $48,160 in March to the close of $29,000. Inflation concerns in the wider economy led to the drop, as well as a shift away from risk assets and systemic risks from the crypto industry.
According to price-charts, bitcoin, the most valuable cryptocurrency in terms of market value, had strong support at $29,000, a level which has been tested many times over the past week. Charts show that a close below this level could lead to the cryptocurrency falling to its 2017 high, which was nearly $20,000 However, resistance at $30,500 remains. A daily close above this level would indicate strong signs of recovery.
The Relative Strength Index ( RSSI ) readings have dropped to almost 30, which suggests that the market is near its bottom. This week’s momentum could be aided by short-term buyers. Last week’s sentiment data suggests that the market could see higher prices in coming weeks.
Analysts have stated that investors will continue to evaluate price action before deploying capital.
‘U.S. ‘U.S. Although crypto did not see the same revival as stocks, major cryptos like bitcoin have been stable, which suggests a ‘calming’ before large players make new commitments to the market.
Monday’s gains are due to a rebound in Asian equities, as reports suggest that major Chinese cities have begun to relax coronavirus restrictions following months of tight lockdowns. Traders bet that the opening of the economy will bring more consumer spending, which could boost company revenues and signal a bottom in stocks in the region.
The Asia Dow index climbed 2.15% while Hong Kong’s Hang Seng index grew 2.06% on Monday. Japan’s Nikkei 225 jumped 2.19% while Hong Kong’s Hang Seng index added 2.06% on Monday. European indices like Stoxx 600, DAX and DAX have increased at least 0.82% since Monday. Futures rose in the U.S. as Nasdaq 100 jumped 1.44% and S&P500 climbed 1.08%.
Analysts warn that bitcoin recovery could take longer than anticipated.
FxPro senior market analyst Alex Kuptsikevich stated that it would be premature to discuss a bullish counteroffensive before bitcoin reaches $30,600. This horizontal resistance line has been in place since mid-May. “Renewal of risk appetite in global market is fueling hope for a turnaround.
Kuptsikevich warned that the divergence in cryptocurrency and equity dynamics was evident last week, which highlighted the weakness of crypto market.