Bitcoin (BTC) rose above $30,000 during Asian trading hours on Monday, up 5.6 percent in the previous 24 hours, in a short show of strength amid a record losing run, according to statistics.
For the first time in its existence, the asset has fallen for nine weeks in a row, from a high of $48,160 in late March to a row of $29,600 last week. The downtown coincided with larger economic concerns about inflation, a shift away from risky assets, and systemic danger within crypto sector.
According to price charts, bitcoin found firm support at $29,000, a level that has been tested multiple times in recent weeks. Charts imply that if the cryptocurrency closes below this level, it might collapse to its 2017 high of around $20,000.
However, resistance above $30,000 remains in place, and a daily closing above that level would signal a significant comeback.
The Relative Strength Index (RSI), a metric used by traders to quantify the size of a price move, has dropped to roughly 30, indicating that the market has bottomed out. This week’s progress might be bolstered by short-term buyers.
Last week’s sentiment data implies that the market may be set for higher prices in the coming weeks.
Investors, according to some experts, will continue to analyze price activity before investing cash.
“U.S. markets saw a modest revival last week with stocks rising across the board,” Simon Peters, market analyst at eToro, said in an email. “Although crypto didn’t see quite the same revival, prices have now been holding steady in major cryptos such as bitcoin, suggesting a ‘calm’ of sorts before any fresh commitment to the market is made by large players.”
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