Bitcoin (BTC), a cryptocurrency, gained 5% to reach $20,000 as surprise gains were made by the July 4th hype. Tuesday was a good day for the cryptocurrency market with the majority trading in green.
Bitcoin’s Tuesday rally was the first for the coin in five days, with the 4th of July daily candle about to close, and providing some dose of optimism in the dreary bear market.
Bitcoin and other cryptocurrencies remained virtually unchanged on Monday, with crypto assets trading at downcast prices after a huge selloff in recent months.
The worldwide cryptocurrency market capitalization was trading at $909 billion, an increase of more than 6 percent in the last 24 hours. However, the total trading volume of cryptocurrencies increased by nearly 37 percent to $55 billion.
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Bitcoin Can Retake $20,000 Land
The BTC/USD pair gained its largest gain in three months on Tuesday according to TradingView data. The pair spent the majority of the weekend near $19,000 as the bulls attempted to push BTC’s price to $20K.
After a turbulent second quarter, Bitcoin’s price has entered the third quarter with sluggish movement as it continues to consolidate around the $20,000 mark.
The increase in geopolitical worries and the change of sentiment (caused by rates increases and the conflict in Ukraine) has caused a major blow to crypto assets. Bitcoin is now back at levels seen last December 2020.
BTC continues to trade at less than a third of its all-time high of $69,000, attained in November last year, but has maintained its position above $18,000, the bottom it touched during mid-June liquidations.
Source: TradingView.com| Source: TradingView.com
BTC Required To Break Above $19K
Bitcoin was able to overcome the bad trends and recover from the $19,000 mark.
According to popular analyst Matthew Hyland, Bitcoin has successfully “created Bullish divergence on the daily time frame for the first time since breaking below $20,000.”
On-chain analytics resource Whalemap verified that whales purchasing tokens at the price of $19,200 had given a sigh of comfort and market support.
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Santiment statistics shows that traders were optimistic after a significant number of Bitcoin longs positions were opened by cryptocurrency exchanges on July 4.
US traders, one of the largest markets, are now placing substantial bets on Bitcoin’s continued ascent.
Meanwhile, some crypto investors who are still long-term Bitcoin bulls expect that the leading cryptocurrency will require a one- or two-year buildup cycle until the next BTC halving before the leading crypto can truly rebound and register new highs.
Featured Image from 123RF. Chart from TradingView.com