Bitcoin is starting to show signs of life After 9 straight weeks of losses

Bitcoin showing improvement

The price of Bitcoin (BTC) is up 5.6% in the last 24 hours and back above $30,000 on Monday. This is a brief sign of strength in the middle of a record losing streak.

Bitcoin’s price has gone down for nine weeks in a row for the first time in its history. It went from $48,160 at the end of March to $29,600 at the end of last week. Along with the drop, there were worries about inflation in the economy as a whole, a move away from risky assets, and systemic risk in the cryptocurrency industry.

The price charts show that Bitcoin had strong support at $29,000, a level that has been tested many times over the past few weeks. According to the charts, if the cryptocurrency closes below this level, it could fall to its 2017 high of nearly $20,000, which would be a big drop. But there is still resistance at $30,500, and a daily close above this level would be a strong sign that the market is recovering.

Readings for the Relative Strength Index (RSI), a tool used to measure how much an asset’s price moves, dropped to near 30, which is a sign that the price may be nearing the bottom. This week, short-term buyers could gain steam. Last week’s data on how people feel about the market suggests that prices could go up in the coming weeks.

Bitcoin (BTC/USD) daily chart

bitcoin price may 30, 2022

Some analysts said that investors would keep watching how prices move before putting money to work.

“Last week, the U.S. markets had a small rally, with all stocks going up, an eToro market analyst said in an email. “Crypto hasn’t seen quite the same kind of comeback, but the prices of major cryptos like bitcoin have stayed the same for a while now, which suggests a “calm” before any more market exposure. by really good actors.

Monday’s run comes after Asian stocks went up on news that major Chinese cities were starting to loosen restrictions on coronavirus after months of strict lockdowns. Traders bet that when the economy reopens, people will spend more money. This could boost corporate earnings in the coming weeks and show that stocks in the region have hit bottom.

On Monday, the Asia Dow index went up 2.15 percent and the Hang Seng index in Hong Kong went up 2.06 percent. Since Monday, the Nikkei 225 in Japan went up 2.19 percent, and the Stoxx 600 and DAX in Europe went up at least 0.82 percent. Futures for the U.S. went up, with the Nasdaq 100 going up 1.4% and the S&P500 going up 1.8%.

But some analysts say it might take longer than expected for Bitcoin to come back.

Alex Kuptsikevich, a senior market analyst at FxPro, said, “It will be too soon to talk about a bullish counterattack until Bitcoin breaks above $30,600, which has been a horizontal line of resistance since mid-May.” “A renewed willingness to take risks on the world’s markets is giving people hope for a change.”

“The difference in behavior between stocks and cryptocurrencies was clear over the past week, which shows that the cryptocurrency market is weak,” Kuptsikevich said.

Source: Coindesk

The views and opinions expressed here are only those of the author and do not necessarily represent the views of Forex Quebec. Risk is a part of investing and trading, so you should do your own research before making a choice.