Bitcoin Recovers $ 31,000 As Traditional Markets See Risk Reset, BNY Mellon Makes Crypto Push

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Bitcoin topped $ 31,000, alongside gains in global stock markets and new evidence of growing demand for cryptocurrency from traditional market players. However, it may be too early to call for an uptrend reversal.

The largest cryptocurrency by market value was changing hands near $ 31,300 at the time of publication, a 5% gain on the day, according to data from CoinDesk 20. The rebound comes a day after the cryptocurrency printed its first UTC close below $ 30,000 since New Years Day and may have surprised some traders.

The market was concerned that put options writers would take short positions in the spot / futures market on a breakout below $ 30,000, amplifying the price decline. Additionally, the fund’s holdings plummeted before bitcoin broke below $ 30,000, signaling the lack of declining demand from large investors and higher chances of continued sales.

Related: Bitcoin Bounces Above $ 30,000; Resistance seen at $ 34,000

Still, the drop below $ 30,000 was shallow and short-lived, possibly due to the risk reset in traditional markets. The US stock market jumped more than 1% on Tuesday as attention shifted from concern over the variant of the coronavirus delta to growth, lifting banks and industrial stocks, according to the Financial Times. Futures contracts linked to the S&P 500 point to a positive open on Wednesday, with a gain of 0.65%, according to Investing.com.

Bitcoin crossed $ 30,000 earlier today. Buying pressure increased, pushing the cryptocurrency above $ 31,000, after the Financial Times reported that Bank of New York Mellon joined State Street and four other banks in supporting the platform. Pure Digital form of cryptocurrency trading.

Earlier this month, BNY Mellon, the world’s largest custodian bank, struck a deal with Grayscale Investments to manage the digital asset manager’s accounting and administration services. Grayscale is a unit of Digital Currency Group, which also owns CoinDesk. Many investment banks have announced plans to launch crypto services this year, citing renewed interest from their clients.

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Sentiment in the crypto market may have also been boosted by the FTX crypto derivatives exchange’s record $ 900 million fundraiser at a valuation of $ 18 billion. The large number highlights a long-term belief in the crypto industry despite bitcoin, the industry leader, losing more than half of its value since mid-April.

Related: Market Wrap: What’s Next For Bitcoin After A Break Below $ 30,000

Some in the crypto community are associating the price rally with the impending bitcoin-centric “The ₿ Word” conference scheduled for Wednesday. Tesla CEO Elon Musk, one of crypto’s most famous proponents, is reported to be participating in a live chat with Square CEO Jack Dorsey and ARK Investment founder Cathie Wood.

“Bitcoin hit a low just below Elon Musk’s entry price the day before a big conference to talk about Bitcoin was held sounds like something that would seem very obvious in retrospect,” a popular trader tweeted .

Nevertheless, some analysts remain cautious. “Bitcoin is just moving,” said Joel Kruger, currency strategist at LMAX Digital. “I still think there is further downside risk, but we would need a break below the June low of $ 28,800 to trigger such a move.”

Bitcoin still remains well below the crucial 50-day moving average (MA) resistance. “Bitcoin has moved below its 50-day MA downtrend, which can be seen as initial resistance near $ 35,000, a breakout above which would target the 200-day MA near $ 44,000.” , Katie Stockton, founder and managing partner of Fairlead Strategies said in the weekly research note released Monday.

On the downside, the June low of $ 28,800 is key support. “Everyone talks about $ 30,000 like it’s a big deal, but in reality it’s the June low of $ 28,800 that is the key level to watch,” Kruger said.

A failure can lead to a quick sale of the old media that has become a hurdle at $ 20,000. “The area between $ 20,000 and $ 30,000 is lightly traded, there is fresh air between these levels,” noted Charlie Morris, IT director of ByteTree Asset Management, in a blog post on Tuesday. “The price is supposed to move slowly in heavy areas and quickly in light areas.”

Read also: Institutional demand for Bitcoin remains weak: Glassnode

UPDATE (JULY 21 10:53 UTC): Updates the price of bitcoin, adds BNY Mellon report.

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