If buyers continue with the same sentiment, Bitcoin price even an area of $22,400-$23,000 could be reached
The sudden burst in the market for Bitcoin might lose momentum quickly. The Bitcoin price jump still drew into the industry’s concerns on whether this sudden reaction could be seen as a positive in the long term. At the time of writing, BTC is changing hands at $21,537.
BTC/USD 4-hour chart | Source: TradingView
After big rally past $21,000, Bitcoin price momentum may not last
Bitcoin today continued to increase in price, surpassing the level of $21,000, causing many virtual currencies to skyrocket, pushing the entire market capitalization to $1,050 billion.
Bitcoin continued to surprise when it turned around and surged past the $21,000 mark. Many professional traders believe these are important signs that the leading cryptocurrency is ready to break out to higher prices. However, skepticism remains that Bitcoin can continue to fall deeply, before regaining solid momentum.
Statistical data over the past 24 hours shows that the world’s most popular and valuable cryptocurrency fluctuates between $20,931 – $21,667 (lowest price – highest). According to CoinMarketCap, Bitcoin trading volume during this period is around $41 billion, with market capitalization at $407 billion.
Bitcoin bounced back and traded above the $21,000 threshold, leading many to be optimistic. Currently, Bitcoin is facing resistance at $21,113. According to experts, this recovery still needs time to ensure the uptrend has started firmly.
In fact, Bitcoin in general and cryptocurrencies in particular are increasingly closely related to the stock market. Bitcoin is being negatively affected as the US stock market plummets, as investors worry about the effects of the US Federal Reserve’s (Fed) aggressive tightening campaign to curb monetary policy. inflationary. Risky assets like stocks and cryptocurrencies have lost their appeal as interest rates soar. Risk-aversion pushes Bitcoin price below the important $20,000 threshold.
Previously, in his speech at the annual Jackson Hole conference on August 26, the Fed Chairman affirmed that the US central bank will use tools “to the fullest” to deal with inflation that is still at a low level. The Fed has raised interest rates by 2.25$ points this year, but Mr. Powell said it still cannot “stop or pause” raising rates, even if it could hinder growth economic chief.
In addition, the virtual currency market in general and Bitcoin in particular is still confused by the news that 10,000 Bitcoins were released after 9 years of “hiding”. Specifically, on August 28 and 29, analysts detected two transfers of 5,000 units from a single Bitcoin wallet address. More than $200 million worth of Bitcoins are said to have been stored since 2013. Instead of being put on the exchange, the money was transferred to new storage wallets. Many believe that if Bitcoin continues to stabilize at this level for the next two weeks, the “crypto winter” could end and a strong bull cycle will begin again. The Bitcoin price was up 7.1% in the past month but still fell by 10.1% over the past 30 days because of high volatility over the summer.
The price of Bitcoin rose again causing a series of large-cap cryptocurrencies to break out. Specifically, Cardano increased by 5.6%, Dogecoin increased by 2%… Some other cryptocurrencies fluctuated in the 1% range.
The rally of most large-cap altcoins caused the total market capitalization of the entire cryptocurrency market to increase to $ 1,050 billion, equivalent to an increase of 0.13%. The overall cryptocurrency market cap stands at $1,058 trillion, and Bitcoin’s dominance rate is 39.1%.
Read more:
- Bitcoin Price Rallied Over 10% To Above $21,000, Its Largest Daily Gain In Six Months, Aiming For $25,000 Soon
- 47% Of Bitcoin Holders Remain In Profit At The Current Price While The Majority At 52% Are In A Loss