The ferocious bitcoin sale stops while the crypto enjoys a rebound

Bitcoin broke away from a 12-day decline, catching its breath to bounce back with the rest of the cryptocurrency market after a record series of declines. Analysts have warned that the break could be short.

The world’s largest cryptocurrency rose 12 percent early Sunday, recovering some of its losses from a sharp drop on Saturday that brought the token to just $ 17,599. It cost $ 19,500 at 9:15 a.m. in New York. Ether, which reached $ 881 on sale, rose 15 percent to $ 1,040, while alternative coins from Avalanche to Solana also enjoyed gains. Even with the rebound, bitcoin fell nearly 40 percent this month and more than 70 percent from its all-time high in November.

“For those who like to buy cheap and sell high, I think most may agree that this is the first,” said Matti Greenspan, founder of Quantum Economics.

The cryptocurrency market is known for its rampant fluctuations – especially on weekends, when movements can be increased – and the blow of the last two days has provided the latest example. However, the general tone remains negative, with the tightening of funds providing a macro-collision and cryptocurrency crises raising concerns about growing stress.

Trading was heavier than normal this weekend, with bitcoin approaching $ 40 billion in the last 24 hours at about 9 a.m. New York, according to CoinGecko. Last Saturday and Sunday, the volumes amounted to 25.6 billion dollars and 22.5 billion dollars, respectively.

Bitcoin’s foot down on Saturday pushed the coin below $ 19,511, the peak it reached during its last bullish cycle in 2017, which it reached at the end of the same year. In its approximately 12-year trading history, bitcoin has never fallen below the peaks of the previous cycle. The token also broke the $ 18,300 technical support level, said Katie Stockton, managing partner and founder of Fairlead Strategies. Consecutive weekly losses below that level would increase the risk of falling to the next support of $ 13,900, she added.

As for trading now, Stockton said the short-term technical signal of a “counter-trend” “provides some hope that a rebound will develop in the near future.” However, she warned not to buy a drop, because the momentum is very negative.

Toxic combination of cycles of bad news and higher interest rates harm crypto. The Federal Reserve raised its key interest rate on June 15 by three-quarters of a percentage point – the biggest increase since 1994 – and central bankers have signaled they will continue to rise sharply this year in the fight against inflation. In addition to the mood, crypto hedge fund Three Arrows Capital suffered heavy losses and said it was considering asset sales or bailouts, while another lender, Babel Finance, followed in Celsius’ footsteps on Friday.

Risk-reduction sentiment can be seen in Tether’s redemption pressures, as the circulation of the widely used stable coin has shrunk by more than $ 15 billion since the collapse of the Terra ecosystem in May, according to CoinGecko. About $ 4.4 billion in these buyouts have come in the last seven days.

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