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Bitcoin price bounced to around $32,200 after touching a 2.5-week low near $31,000 zone

Bitcoin price has surged to more than $32,200 after hitting a two-week low at $31,000. At press time, BTC is trading at $32,232, recording a gain of nearly 3% in the past 24 hours.

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BTC/USD 4-hour chart | Source: TradingView

Bitcoin price repeatedly tested the $30,000-$31,000 range as support before rebounding higher

Usually, the weekend is the time when the BTC price declines the most, but in recent weeks, this is almost the time when the largest cryptocurrency in this market accumulates and increases slightly.

BTC has repeatedly tested the $30,000 – $31,000 range as support before bouncing back higher. Its maximum retracement was able to penetrate the $35,000 resistance. However, the low price accumulation pushed the pair back above $32,000.

As a result, the bearish sentiment towards Bitcoin from analysts is extremely high, around or below $30,000, as AZCoin News reported.

Bitcoin might be prepping for a price breakout – higher or lower – after trading in a range between roughly $30,000 and $40,000 for the past eight weeks. The big concern is a drop below the psychological level of $30,000 might trigger additional selling as options traders look to square positions.

The formation of a potential inverse cup and handle formation also sees Bitcoin crashing below $20,000 on the next breakdown below the $30,000 – $31,000 range.

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Inverse cup and handle pattern on the Bitcoin chart | Source: TradingView

Despite the 51% drop in the BTC price, many fear that another multi-year bear market could begin. But in reality, Bitcoin had six consecutive months of gains before the downturn and the asset will have to recover from a historical perspective.

Even if BTC is down 51% from its all-time high, on a year-to-date basis, its price is still 250% above its $9,100 valuation on July 16, 2020. Bitcoin’s term is still intact with its price currently testing the 12-month moving average, a key support level that will determine where the price will go from here.

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Bitcoin month-over-month returns | Source: Delphi Digital

At the end of the week, Ether is trading at $1,981, XRP at $0.6, recorded an increase of 7% and 5% respectively in the last 24 hours. The total market cap is at $1.316 trillion.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Axie Infinity (AXS) at 57.38%, Flow (FLOW) at 30.36%, and NEM (XEM) at 17.86%. The top three altcoin losers of the week are Telcoin (TEL), 0x (ZRX), and Theta (THETA) with a corresponding decrease of 31.02%, 24.41%, and 23.42% respectively.

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