After being covered in crimson for weeks, Bitcoin (BTC) is now beginning to regain its strength and is drilling past the $21,000 mark, much to the delight of some cryptocurrency investors.
The most sought-after cryptocurrency asset is currently trading at $22,200, up 13% over the past seven days, according to Coingecko data released on Friday.
After falling below the $20,000 mark for seven days, BTC reclaimed it on Wednesday. Although the price of the cryptocurrency is currently much higher than its selloff low of $18,000 in mid-June, it is still trading at less than 70% of its all-time high near $69,000.
On Friday, the market value of all cryptocurrencies rose by about 2% from the day before. The value of the global cryptocurrency market was $919 billion on the same day.
Green Day For Bitcoin: Moving On To The Next Support
On the other hand, statistics from Coingecko show that the volume of the cryptocurrency market has dropped by more than 18% over the last day. The estimated value of the crypto market on Friday was $55.25 billion.
Jamie Cox, managing partner of Harris Financial Group, claims that the “Green Day” on the markets follows an increase in U.S. unemployment claims, which may mean that the “pressure on wages may have now peaked.”
Following a transition above $20,500, the price of BTC started to rise steadily and tested the $22,200 level before encountering selling interest and falling to $22,100.
The price may drop to the $21,200 level below the next significant support, which is close to the $21,500 region. Near $22,500 is the next significant resistance level; if it is crossed, the price may increase to $23,000.
On the daily chart, BTC’s total market cap is $415 billion | Source: TradingView.com
The BTC Rally Has Not Excited All Analysts, however
According to some analysts, the cryptocurrency’s trajectory is still downward. Many people are becoming more optimistic and bullish, according to “Roman” on Twitter, who noted that over the past eight months, we have repeated the same candle patterns.
He claims that despite the fact that the trend is still bearish, BTC’s break of the $22K barrier is just the most recent in a series of “fakeouts” that will lead many traders astray into thinking the bottom has been reached.
“BTC has seen a slight uptick over the past four days… The daily trend for BTC continues to be in the shape of a downward band, and the mood on the cryptocurrency market is still one of “extreme fear,” according to analysts at WazirX.
Some people lack confidence. Will Clemente, a cryptocurrency analyst for Blockware, referred to the 200-week moving average (WMA) of $22,520 as a noteworthy figure. If the price of BTC stays below this level, the price decline may continue, he warned.