The future could see Bitcoin gain some positivity.
Following last week’s calamitous meltdown that chopped more than 30 percent off the value of prominent cryptocurrencies, including Bitcoin, the broader crypto markets have made a modest comeback.
After a sharp decline, Bitcoin’s price has stabilized at $17K, which is a far cry from its all-time peak in November of last year. Experts believe that this price range represents a critical support zone for cryptocurrency.
Sunday’s Coingecko statistics indicates that Bitcoin (BTC) has increased by more than 14% over the past week, trading at $21,700 at the time of writing.
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Bitcoin gets a good dose of optimism
Bitcoin rose above the trading limit’s top on Friday as investors regained optimism.
BTC/USD has seen a rise since Wednesday when it dropped below $20,000 and U.S markets are expected to slow down ahead of weekend.
Due to selling pressure, Bitcoin, the largest cryptocurrency market cap, fell below $17600 earlier this month. CoinGecko data shows that Bitcoin fell as high as 69% off its record-setting peak.
Bitcoin’s mining difficulty achieved its second-largest decline for 2022 on Thursday.
Bitcoin’s slump has paused after a quick decline from $32,000 following the breakout of a bearish flag. The $17K-$20K region of the coin’s ATH is providing stable foundation, resulting in a price rebound towards the $24K and possibly the $30K level of major resistance.
Source: TradingView.com| Source: TradingView.com
In the meantime, Bitcoin’s focus on Sunday was $21,000 despite warnings that volatility might still shake the market before Monday.
BTC/USD Trade in a Higher Range
TradingView data indicated that the BTC/USD traded in an overall higher range after U.S. stocks ended on a positive note.
As highlighted by market observer Holger Zschaepitz, the S&P 500 completed its second best week of 2022, indicating a minor improvement in risk assets.
Bitcoin’s supply is limited to 21 million coins. However, there is only 19 million Bitcoins in total, and 2 million more are yet to be mined.
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Bitcoin’s institutional acceptance is increasing, and more institutions are seeking to add Bitcoin exposure to their balance sheets. It is likely that supply will be more limited in the future.
According to the central bank’s chairman, the Federal Reserve is keeping a careful eye on the cryptocurrency industry but is not concerned.
Fed Chairman Jerome Powell stated before a Senate committee that the central bank does not see any “macroeconomic repercussions” from Bitcoin and the larger crypto market’s dramatic price swings, but that stronger regulation is still necessary.
Featured Image from Watcher Guru. Chart by TradingView.com