Bitcoin Hovers Around $30,000: Recovery On the Horizon for This Crypto? Know the Details
Bitcoin has seen new lows over the past two months. The world-renowned cryptocurrency asset has dipped to the $30,000 range and has been hovering and fluctuating around that pain point ever since. As early back as June 22, the coin dipped to record-lows when it traded for $29,700. This drop came just a day after the People’s Bank of China ordered the country’s major financial institutions to stop facilitating the transactions of cryptocurrencies, mentions the report. Bitcoin is trading for $31,224.76 as of 1705 hours IST on July 16 on CoinMarketCap. This is a bare minimum hike from where it stood at its lowest point.
In recent times Bitcoin has taken a walloping in the international market as it along with several cryptocurrency trading agencies the world over are facing a global crackdown. The crackdowns aside, the crypto asset is also losing traction with investors as more favourable assets like Ethereum come into play.
On July 6, Goldman Sachs came out with a report that suggests Ethereum had a better standing amongst investors as a digital asset due to its real-use cases. While Bitcoin does have the pop-culture traction to back its name in the market in terms of popularity, it fails to carry through with its lack of real-use cases. That said, Ethereum does face some resistance in the market from bears. ZebPay Trade Desk said, “At current levels, bears have been preventing Ether prices from rising up and buyers seem to be unable to push prices upwards. However, the asset continues to look attractive at current prices, and with the ‘London’ fork just 3 weeks away, we anticipate more activity to set in and drive prices. Volumes continue to remain low, but this has been native to all assets, not just Ether, so doesn’t concern us too much.”
Edul Patel, chief executive officer and co-founder, Global Crypto Trading Platform, Mudrex, said “The altcoins are at the crucial support zones. Sellers are pretty active and looking to capitalize on a possible breakout. Despite the selling, it hasn’t been a terrific sell-off yet. Bulls have managed to hold the support levels so far. Technical indicators signal increased volatility across the markets. Bollinger bands are expanding, and we could expect the volatility to continue in the short term. Traded volume on Bitcoin remains low, which indicates that the large accumulators, also known as Bitcoin whales, are not selling their holdings. An improvement in Bitcoin’s momentum will result in a large amount of money flowing into the altcoins.”
ZebPay Trade Desk noted that a bullish move upwards is likely to be witnessed soon due to increased buying by investors and Bitcoin whales. “The upcoming Grayscale unlockings, coupled with the Taproot upgrade has already led to blockchain data pointing to increased buying by wealthy investors and Bitcoin whales, so a bullish move upward seems likely soon. The upside is likely to play out, above the 50-day moving average (MA) resistance, which currently sits at $36,000 levels. Most analysts believe that BTC has factored in most, if not all of the negative news during the May sell-off when the price fell from $60,000 to $30,000. Hence, the downside, if any, is likely to be fairly limited. Technically, Bitcoin is trading sideways and, in a broad, range from $36,500 to $31,00 and Breakouts on either side with good volumes will decide the further trend for the asset,” said ZebPay Trade Desk in a note.
As more and more countries attempt to fix a framework on the elusive crypto asset, the market for Bitcoin continues to take the hits. Many of these Bitcoin trading agencies are not mandated to function in places like Britain, Australia, China or even India for that matter, under the current operational methodology. It is either being entirely halted or severely restricted.