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Bitcoin prices have shown their strength today by rallying. (Photo by INA FASSBENDER / AFP) (Photo by … [+] INA FASSBENDER / AFP via Getty Images)
AFP via Getty Images
Bitcoin prices have shown resilience today, recovering from crossing $ 30,000 and reaching their lowest since January.
In doing so, the cryptocurrency has helped illustrate the support it has around this key psychological level.
The world’s largest digital currency lost value today, from nearly $ 33,000 around midnight EDT to $ 28,814.75 around 10 a.m., according to figures from CoinDesk.
After dropping to this point, bitcoin was trading at its lowest since Jan. 4, additional data from CoinDesk reveals.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
However, after suffering those losses, bitcoin rebounded, rallying over 15% to hit nearly $ 33,300 this afternoon.
Several technical analysts have provided optimistic interpretations of this price increase.
Katie Stockton, Founder and Managing Partner of Fairlead Strategies, LLC, noted that the recovery shows support close to current levels.
Plus, she said it shows a welcome reaction to oversold indications!
William Noble, chief technical analyst at research platform Token Metrics, also weighed in on the issue, noting that while the recent declines have been big, they are not the end of the world.
Even though bitcoin fell to $ 30,000, it did not hit $ 26,000, which he considers the point of ultimate psychological support since this is Michael Saylor’s average purchase price for the digital asset.
Jason Lau, COO of the OKCoin cryptocurrency exchange, also offered his contribution, providing technical analysis.
The $ 30,000 / BTC range has been tested and has shown strong support going back to early 2021, having tested and rebounded several times now, he said.
Lau pointed out that while temporary drops below $ 30,000 are not of great concern, if the digital currency trades below $ 30,000 for a long time, it will follow closely behind.
Pankaj Balani, co-founder and CEO of Delta Exchange, stepped in, providing an assessment of key market drivers and technical levels.
Bitcoin has rebounded sharply from today’s lows and is trading near its all-time high, he noted.
Unlike previous times, there is currently little leverage in the system on the long side, this was visible from the gradual decline from the steep drops we saw in mid-May. In fact, nude shorts have started to enter the market and the risk of big rises due to squeeze shorts is higher, Balani added.
The market expert offered a bullish technical analysis:
We expect Bitcoin to maintain the $ 30,000- $ 42,000 trading range for now and test it a few more times before making a decisive move either way.
The global macro environment is positive and until there is a big change we don’t expect Bitcoin to break above the $ 30,000 support.
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS.
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