After a weekend in which Bitcoin (BTC) experienced realized losses to the tune of $7.3 billion, the largest cryptocurrency has erased all weekend losses and is up over 8 percent to $21,206 in the last 24 hours.
Bitcoin has risen almost 22 percent since Saturday’s low of $17,592, and is currently trading around $21,000.
The BTC price increased more than 4 percent to $20,882, Coin Metrics data showed Tuesday. Bitcoin dropped to $17.959 on the weekend. This was the lowest level since December 2020.
Bitcoin gained on Wednesday after negative sentiments lifted it to new lows in 2022.
Dogecoin Price Jumps As Elon Musk Reiterates Support For Meme Crypto At Qatar Forum| Dogecoin Price Jumps As Elon Musk Reiterates Support For Meme Crypto At Qatar Forum
Bitcoin Market Sell Pressure
Heavy liquidations in the cryptocurrency market dropped Bitcoin’s price below its all-time high in 2017, placing a heavy load on the whole cryptocurrency industry.
The broader cryptocurrency market did not anticipate such a sharp decline, especially below the “unbreakable” $19,000 support, but the cryptocurrency has, as is occasionally the case, breached the $20,000 barrier.
Image by Crypto Academy
The price actions are a response to the negative press surrounding the bitcoin sector, which began with pressure from macroeconomic forces.
The United States Federal Federal Reserve increased its benchmark rate of interest by 34 percent, marking the biggest increase in rates since 1994.
To early for a significant turnaround
“This recovery takes out some of the extreme oversold aspect of the cryptocurrency,” Alex Kuptsikevich, a senior market strategist at FxPro, pointed out.
“However, it is too soon to speak of a long-term turnaround: all unfavorable fundamentals remain in place,” he continued.
The total crypto market capital is $881 billion according to the daily chart. Source: TradingView.com| Source: TradingView.com
The surprising rebound was also largely caused by a lack of selling activity on centralized exchanges, since the vast majority of institutional and individual investors gave up during the weekend trading session, when the Bitcoin network suffered $7 billion in losses.
Similarly to stock investors, crypto investors are treading carefully in the face of bear market rallies, with some expecting the asset class would decline further before experiencing a substantial recovery.
Recommended Reading: Celsius (CEL), Price Scorches to 130% Rally Despite Frozen Network accounts| Celsius (CEL) Price Scorches To 130% Rally Despite Frozen Network Accounts
Craig Erlam is a senior Oanda market analyst and warns not to get too excited about market gains after the Monday Juneteenth holiday markets closed.
Erlam stated in a newsletter, “Everyone is looking for the bottom, but there’s a tremendous cloud of uncertainty over the forecast and the data has not yet shown any good indicators.”
Featured image taken from Panorama Summit. Chart by TradingView.com
