BTC: Bitcoin regains $30K territory after the struggle of the last few weeks

BTC: Bitcoin regains $30K territory after the struggle of the last few weeks

Bitcoin recorded a significant positive divergence early Monday, after seven days of trading below $30,000. The cryptocurrency is trading at $30,536.93 at press time, down 2.5% from the previous week, according to data from Coingecko.

In the previous 24 hours, the capitalization of the global cryptocurrency market increased by nearly 2 percent, reaching nearly $1.3 trillion. However, total cryptocurrency trading volume increased by more than 28% to $62.13 billion.

Bitcoin has struggled in recent weeks as the US Federal Reserve raised interest rates and inflation remained high, increasing the likelihood of further monetary tightening.

Bitcoin is no longer a hedge against inflation? inflation?

In the past, bitcoin was recommended as an inflation hedge, but in recent months it has proven to be closely associated with risky assets, such as the Nasdaq 100, which has fallen in response to broader volatility. of the market.

Over the past 10 days, bitcoin price has been moving steadily, consolidating around $30,000. Bitcoin may struggle to regain its former glory as investors appear to be avoiding riskier assets in the current inflationary environment.

According to Mudrex co-founder and CEO, Edul Patel:

Despite rising nearly 3% in the past 24 hours, bitcoin failed to break through the US$30,000 threshold. Over the past week, bitcoin price remained unchanged as it struggled to break above its support. »

The Dow Jones Industrial Average (DJIA) has fallen for nearly eight straight weeks, and major indexes have followed suit.

As the S&P 500 declined, a strong correlation between it and the crypto markets became evident. BTC which ended the week at $30,000 represents its seventh consecutive weekly close in red territory, according to Darshan Bathija, CEO and co-founder of Vauld.

BTC - Source: TradingView. Lire aussi : CZ confirme que Binance a récupéré 5,8 millions de dollars auprès des pirates d'Axie Infinity !.com

For his part, the popular analyst of crypto Lark Davis writes:

“Bitcoin is exhibiting a massive bullish divergence on a daily scale. The last time something similar happened was in 2021. Could this portend a massive rally? »

The next two weeks will be crucial for BTC

Noelle Acheson and Konrad Laesser of Genesis Global Trading said in a note released on Saturday that the price of bitcoin is likely to fluctuate between $29,000 and $31,000 over the next two weeks.

Certain economic data, such as US gross domestic product (GDP) or inflation numbers, “can change the narrative,” according to Acheson and Laesser.

According to analysts at WazirX Trade Desk, BTC’s monthly trend has broken below the ascending channel pattern.

Meanwhile, the next resistance level for BTC is predicted at $40,000, while the closest support level is at $24,000.

Bitcoin’s monthly relative strength index is currently at 47, its lowest level in over two years. The support level for IFR is at 43, according to analysts.

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