Bitcoin prices have been at a steep peak over the past two days, provoked by market distrust and the complete closure of mining in China. On June 22, the asset hovered near the $32,000 mark, not far from the main support zone. As a result, the cryptocurrency failed to stay above the border of $30,000, and the coin fell to $28,800. At the same time, the total capitalization of bitcoin has decreased to $550 billion. However, in the end, the market quickly pushed the asset to acceptable positions beyond the $30,000 mark.
As of 11:00 UTC, the first cryptocurrency rose by 7.5% and stopped at a value of $34,000. The total capitalization of bitcoin has again reached the mark of $640 billion, and the volume of daily trading is expected to increase sharply. The BTC/USD indicators did not have time to fall to the next support level in the region of $28,000. This suggests that the institutional audience of BTC was activated in time and began to buy off the fall of coins. This made it possible to break the bearish trend and arrange a local reversal of the movement. Bitcoin stopped near the mark of $34,200, but with further growth, the asset faced problems.
This is evidenced by CryptoQuant data, according to which the platform registered a record daily influx of Bitcoins since March 2020. Most of the coins are transferred by retailers, for whom the limit of $30,000 is a guarantee of security. When it broke through, the sale of the cryptocurrency was provoked, which was interrupted in time by major market players. For example, it became known that the investment company ARK Investment Management acquired more than 1 million shares of Grayscale Bitcoin Trust during the collapse of BTC quotes to $28,800. Thanks to this, the cryptocurrency managed to make a rebound to the safe zone, successfully overcoming the support zone in the area of $31,000.
The overall market sentiment continues to be mostly bearish. The daily MACD indicators and the stochastic oscillator do not show growth, and the RSI index is below 50. In a narrower perspective, the cryptocurrency will try to overcome the next resistance line in the region of $35,000. This is indicated by the bullish indicators of the MACD and RSI indicators. With a successful retest of this mark, BTC will face a correction zone in the area of $36,500. Given the local mood of investors, we can say that in the near future, the cryptocurrency can break through the mark of $35,000 and continue to move up.
Bitcoin will soon begin to increase momentum, as everything indicates that the market has found a bottom in the region of $28,800. This is reflected not only in the horizontal charts but also in the overall situation in the BTC network. In addition to record-breaking coin transfers on the exchange, Glassnode registered a record-low number of bitcoin addresses. Daily transaction figures fell to $1.2 million, while miner revenue fell by 4%. The first cryptocurrency adapts to the new operating conditions. This is understood by large companies that continue to hold and accumulate coins. Despite this, in the short term, bitcoin will have to overcome at least four points of resistance in order to finally turn the upward movement.
The material has been provided by InstaForex Company - www.instaforex.com