Bitcoin seeks stability as it prepares to hit 36,000 again
'Crypto' fell on Monday after weekend rebound
The bitcoin has returned to recover the 34,000 dollars this Tuesday, after a back and forth movement developed between Sunday and Monday, which left the most traded digital currency in the world at the gates of the 36,000 dollars, despite the fact that it later rose up to $ 33,500. Several bullish signals indicate that purchases will return to the cryptocurrency, while in the rest of the market there are rises in ‘altcoins’, such as ethereum, cardano or binance coin. The total capitalization is $ 1.45 trillion, according to CoinMarketCap.
The weekend's rally came in the heat of a decline in the balance sheets of crypto trading platforms, signaling investor appetite. The balance of 'crypto brokers' fell to 2.5bn bitcoins on Sunday, reaching the lowest level since May 16, according to data tracked by Glassnode and collected by 'CoinDesk'. On the other hand, the supply of bitcoins in the hands of the "whale entities" has reached a maximum of two months this Sunday, which indicates that the richest investors are returning to the market.
On the other hand, analysts also point to the unlocking of the shares of the Grayscale Bitcoin Trust (GBTC) as a short-term market catalyst. In the next few days, the blockade of these securities, which had been active for six months, will be lifted, which will allow investors to sell their securities on the secondary market. A movement of 40,000 bitcoins is anticipated.
Satoshi Nakamoto's creation remains consolidating in the $ 30,000- $ 40,000 zone, while analysts argue that if recent movements have shown anything, it is that the digital currency has a formidable market floor at $ 30,000. "This is indicative that institutional investors believe in the future potential of the cryptocurrency market and see falling prices as an opportunity to buy these assets at a discount in the hope of long-term profit," said Naeem Aslam, chief analyst at Avatrade analysis.
That said, the bulls are still not out of the woods "because the price of bitcoin has a long way to go before we can actually see that any downside threat is over," adds this observer. Thus “the risk of the price touching $ 25,000 is still on the table; however those odds are not as strong as they were last week, "says Aslam.
According to technical analysis, bitcoin is holding a series of higher lows since the June 22 shake that took the digital currency up to $ 29,000. "This means that buyers were able to defend support levels to the upside, albeit within a narrow range," say the analysts at 'CoinDesk'.
A break above $ 36,000 would be a bullish target towards $ 40,000. For now, gains appear limited beyond the month-long trading range, given the downward trend since April.
Translated by Caoimhe Toman