Bitcoin Bounce Back Strong To $20K After Hitting Low at $17.6K

Finally Bitcoin Bounce Back. Bitcoin ended the 12 days slide and is now bouncing with the other cryptocurrency markets following a record-breaking series of losses. The respite could be short-lived.

From Where Does Bitcoin Bounce Back?

Bitcoin Bounce Back
Bitcoin Bounce Back

The biggest cryptocurrency in the world rose up to 12 per cent early on Sunday and recouped a lot of the losses it suffered from an eerily steep drop on Saturday which sent the price to the low of $17,599. Bitcoin is close to reclaiming $20,000 at numerous points during the day only to fall and was at $19,450 at 12:02 p.m. in New York. Ether was at the lows of $881 during the selling, rose by 17%, to reach $1,060 as alternative coins such as Avalanche to Solana also saw gains. Even with the rally on Sunday, Bitcoin is down almost 40% in the month and is more than 70% below its record-breaking high in November.

“For those who like to buy low and sell high, I think most can agree that it’s the former now,” said Mati Greenspan, who founded Quantum Economics. It’s time to enter the market freshly as the bitcoin bounce back to the psychological support zone. Need to confirm whether the 20k level sustains or not.

It is famous as a wild ride especially on weekends when movements can become more intense — and the whipsaws of the last two days are the most recent example. But the general mood is negative with the tightening of monetary policies causing macro headwinds as well as crises within crypto, which raises concerns about the spread of the gap between good and bad.

Bitcoin has a relief rally after a huge selling

The volume of trading has been higher than usual this weekend, with Bitcoin volume reaching $40 billion within the span of 24 hours that ended at midday on Monday New York time, according to CoinGecko. The weekend prior, and on Sunday, volume stood at $25.6 billion, and $22.5 billion, respectively.

The decline in Bitcoin’s price on Saturday saw the currency fall lower than $19,511, the mark it reached during its previous bull cycle in the year 2017, which was reached at the conclusion of the year. In its nearly 12 years of trading history, Bitcoin has never dropped below prior cycle highs. The cryptocurrency also crossed the technical support threshold of $18,300, according to Katie Stockton managing partner and the founder of Fairlead Strategies. If the token continues to lose weekly this level could increase the possibility of falling to the next level of support, which is $13,900, she said.

Bitcoin bounce Back at $20000 – Psychological Pivot Level

In terms of trading, Stockton said a short-term, “counter-trend” technical signal “provides some hope that a rebound will unfold in the near term.” Stockton warned against investing in the current dip, however, it is a good idea, since “momentum is strongly negative.” Other opinions in Crypto Twitter cited $20,000 as an important pivot point which could offer an additional boost if it is taken and held over the coming days. Otherwise, it could represent the beginning of a new market top.

The level of $20,000 can be described as “significant” as it represents the high of 2017 as well as “since then has acted as both support and resistance on multiple occasions,” Quantum Economics’ Greenspan said. “If we can get and hold above that level it will be quite bullish.”

Major Fed Policy Impacts on Crypto Currency

A mix of bad news cycles and increased interest rates have harmed the cryptocurrency market in recent times which has led to the largest loss streak for Bitcoin during the 12 days which ended on Saturday. It was reported that the Federal Reserve raised its main interest rate on June 15 by 75 bps — the highest rise since 1994 and central bankers indicated they would continue to hike quickly this year as they fight to curb inflation. To add to the excitement cryptocurrency hedge fund Three Arrows Capital suffered large losses and announced it was looking into asset sales or a bailout. Babel Finance, a different lender Babel Finance, followed similar steps on Friday.

The collapse of The Terra Ecosystem Invited Investors to Sell off

The risk-off mindset can be observed in the huge pressure on redemptions on Tether, with the widely popular stablecoin’s market share decreasing to more than 15 billion following the collapse of the Terra ecosystem. This was the first major market crisis this year as per pricing data from CoinGecko. About $4.4 billion of these redemptions occurred in the last seven days.

The cryptocurrency market, in general, is just a fraction of what it was in the latter half of 2021 in the year 2021, at the time Bitcoin traded at a price of $69,000 and traders put their money into speculation investments of all kinds. The total market value of cryptocurrency was $900 billion on Sunday, down from $3 trillion as of November CoinGecko information shows.