Following a rough week filled with crashes, the bitcoin price has shown remarkable resilience and is now at $20,000 After a week of crashes, decentralized finance (DeF/lending protocol Celsius) was on the verge of collapse. The price of the platform has stabilized and the liquidation date is now further off. There is still uncertainty about whether or not the recovery will last and if Celsius will avoid liquidation.
Liquidation Price Pushed Back
Celsius’ liquidation price is currently a distant dream, as bitcoin has risen to over $20,000 in value. The sentiment surrounding the lending protocol has not been affected. Withdrawals have been stopped for seven days. The liquidation price is still $14,000, but the company assured that the company will continue to address the problems.
Celsius announced the withdrawal and transfer freeze on Monday. They cited unstable market conditions for the cause. The lending protocol, despite recent recovery, remains vulnerable to liquidation. Withdrawals and transfers are also frozen.
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Celsius said in its recent communication to the public it is working closely with officials to resolve its problems. “As has been a priority since our company’s inception, we maintain an open dialogue with regulators and officials,” said Celsius. “We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution.”
If history shows, it’s unlikely investors will have the ability to withdraw their money. The space remains largely on the verge of bankruptcy, especially after the Three Arrows Capital (3AC), disaster.
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Bitcoin Will Continue to Recover?
Bitcoin’s current trend points to more recovery, but only if it turns out that this is a genuine recovery and not just a bull trap. The price would then test the $21,000 resistance before the end the trading day.
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Despite this, digital asset prices are still below their 20-day moving mean. Although this may indicate a potential buying opportunity, investors might not be willing to place money in the market at these prices over the past two weeks.
Investors are also more cautious than usual because of market fear. The market might see increased buying pressure if sentiment turns in line with the prices. This could help to sustain the current uptrend.
Bitcoin currently trades at $20.731, at the time this article was written. It remains the world’s largest cryptocurrency with a market cap of $396 billion.
Featured Image from Vulcan Post. Chart from TradingView.com
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