Uncover the rapid 4% price increase of Bitcoin in just one day, reaching over $30,000 from $28,800. Explore the stability of the current price and the ongoing upward trend that began a few days ago.
Why has the price of Bitcoin increased by 4% in just one day? It is currently trading at over $30,000 compared to $28,800 yesterday. Actually, the increase happened yesterday, but today it appears to be stable at roughly $30,000. Additionally, it is an ascent that began a few days ago.
The $25,000 level of support: Why is Bitcoin rising today?
When Bitcoin’s price attempted to retest support at $25,000 a week ago, the current phase began. By that time, it had been declining ever since it failed to maintain a price above $30,000 in late April. That plummet, which lasted less than two months, came to rest exactly on the $25,000 support.
In reality, it is the medium-term low, which constituted a significant barrier during February and March, rather than a solid support price. Particularly strong resistances frequently become supports if they are overcome, and in this year, $25,000 was only overcome on March 17 after a month of futile tries.
Since then, it has acted as a sort of medium-term support, which is why it is not surprise that last week, the price of BTC rested on it. On June 14, it actually dropped as low as $24,800, but it only lingered there for a very brief period before rising once more beyond the crucial $25,000 mark. For two days, that threshold was stable.
The increase to $25k
The rally started on June 16 once the price settled at the $25,000 support level, and is still going strong today.
In actuality, the true recovery following the decline to $25,000 did not happen until the return over $26,000 on June 16. Despite the need for confirmation, what appears to have transpired next appears to be different.
In actuality, the price was below $27,000 for five days. This is because that is the level around which it has been lateralizing ever since March 17, when it broke the $25,000 resistance.
The price should continue to fluctuate at roughly $27,000 if the protracted phase of lateralization that has been ongoing for more than three months is genuinely continuing. As a result, it ought to act in this situation as it did in mid-April, when it attempted to maintain a price above $30,000 but failed to do so.
A lateralization’s end
The argument is that the recent sharp climb may have signaled the conclusion of the lateralization period.
There are now two theories that are well-liked. The first is that this latest attempt to settle above $30,000 may fail if the price drops back below $30,000. The protracted phase of lateralization that started in the second half of March could then continue for a bit longer in that scenario.
The alternative is that although it would require more attempts to finally overcome this obstacle, it has the strength to maintain its position over $30,000 this time. The lateralization phase would then be complete.
Why then is Bitcoin increasing today?
It’s possible that this rise has underlying causes, such as the conclusion of the lateralization period, which would favor the second hypothesis.
The increase from $26,000 to $30,000 was too quick to be a simple recovery following the test of support at $20,000, in fact.
It appears to be mostly related to the US market, and more specifically, what is occurring in the US.
First of all, the Fed governor expressed support for the cryptocurrency markets yesterday. Perhaps something shifted yesterday in the perception of US authorities toward cryptocurrencies in the wake of the SEC attacks of recent months.
This, however, can only be used to defend the increase from yesterday, which had already begun before Powell spoke.
The issue is that major financial organizations, including BlackRock, have stated their intention to become significant players in the cryptocurrency markets, even if simply as intermediaries and service providers.
Given that the crypto market is now still too small and too risky for major institutions to be interested in, many have come to believe that these organizations think it is about to burst.
As a result, markets have probably already started pricing in a future spike in public interest in cryptocurrencies, especially Bitcoin, given that many altcoins run the risk of being classified as unregistered securities.
All of this is fostering a sense of optimism for the future that was just lacking in April.
Therefore, even though the previous attempt to break past $30,000 a few of months ago was unsuccessful, the right circumstances could potentially lead to a breakthrough. By the end of the year, there may even be circumstances that allow for a rise to $35,000 or even $40,000 in salary.