Bitcoin price dropped below $16K, only to soar back toward $17K later, followed by altcoins

The cryptocurrency markets gained over $40 billion in hours following the tweets of CZ and Elon Musk. The past 24 hours have been quite dynamic regarding pricing on the cryptocurrency market. Bitcoin price dropped below $16K, only to soar back toward $17,000 later, followed by the rest of the cryptocurrencies. This happened after both CZ and Elon Musk tweeted out the news that was perceived positively.

Bitcoin Price Testing $17,000

Bitcoin’s price went through a rollercoaster over the past 24 hours. The situation looked grim until a few hours ago, as the cryptocurrency was headed south and traded below $16K.

On Binance, BTC reached an intraday low at around $15,800, but that was before CZ, and Elon Musk tweeted earlier this morning. Binance’s CEO revealed that his company would spearhead an “industry recovery fund” intended to help projects that are strong but currently experiencing liquidity crisis. He didn’t specify what qualifies as “strong” but said more information would be revealed soon.

At the same time, Elon Musk said that Bitcoin will make it in response to a tweet asking where BTC will be in one year from now.

Most of the leading altcoins also followed through, charting intraday gains between 1% and 5%. ETH is up by about 2.7%, BNB – by 1.6%, and so forth. Solana jumped by 7.7% in the past 24 hours, and MATIC is up around 4.4%. Meanwhile, the biggest gainer over the past day is Trust Wallet’s TWT token which soared by a whopping 46%. KCS is the second-best performer with 15% gains, the same as Axie Infinity’s AXS. On the other hand, QNT, XDC, and NEXO are the worst performers, all down by about 4.5%.

This Bitcoin Metric Suggests Potential Price Rally, Here’s Why

Analysts use plenty of market and on-chain metrics to predict Bitcoin’s movement in the foreseeable future. However, there are several common indicators widely used among retail investors since their accuracy and usability are higher than other tools.

Search Trends is a social indicator that determines the number of searches related to the first cryptocurrency. Trends may include inquiries about Bitcoin or ways investors can receive exposure to it. The surge in Bitcoin’s popularity has always correlated with its strong price performance on the market.

Interestingly, this indicator has also acted as a leading indicator for an upcoming market reversal. During the 2021 rally, the interest of retail investors in Bitcoin fell down rapidly, with the number of queries in search engines dropping below the pre-ATH numbers. Shortly after that, the price of the first cryptocurrency tumbled into a downtrend. Rising interest in Bitcoin among retail investors is a positive sign for a market lacking fresh inflows required for the end of the downtrend.

Unfortunately, there is a catch that might invalidate the signs mentioned above. The most recent FTX drama might be the only source of the massive surge in interest in Bitcoin and the crypto space in general. Considering the negative connotation of the source of interest, the metric’s data should not be considered a sign of an upcoming surge in the market since the curiosity of potential retail investors will decrease over time, leaving the industry in the state it has been in since December 2021.

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