After a weekend slump, Bitcoin rebounds to over $20K
On Jun 20, 2022
Saturday saw a sharp decline in the price of Bitcoin, however, the cryptocurrency has rebounded and closed at $20,404 on Sunday. This signals, a recovery from the sharp decline and could mean that investors are seeing value in Bitcoin once again.
After falling to a year’s low of $17,592.78 on June 18, Bitcoin has rebounded by 16.1%, reaching a price of $20,136 at the time of writing. This upward trend is in line with the overall rebound from riskier assets that have been seen in recent weeks. The cryptocurrency industry has been plagued by difficulties recently, including regulatory uncertainty and security breaches, but it seems that investors are starting to see these problems as temporary setbacks rather than indicators of a larger problem with the industry. With Bitcoin continuing to hover around the $20,000 mark, it will be interesting to see if this rebound can be sustained in the coming days and weeks.
Many experts believe that it’s possible that the price has gone up as a result of retail investors buying Bitcoin over the weekend when relatively few professional traders are trading. Bitcoin’s price is down 31% from the past week, and it is now at its lowest point since December 2020. Bitcoin’s relative strength index (RSI) is currently at 26, which is the lowest it has been since at least 2018. Even though this is usually considered to be a strong buy indicator for Bitcoin, there is no sign of the Bitcoin price recovering yet. It is possible that the Bitcoin price could fall even lower in the next few days or weeks.
The sell-off in crypto has coincided with a broad equities slide, as US stocks suffered their biggest weekly percentage decline in two years on fears of rising interest rates and the growing likelihood of a recession. While the crypto market has been relatively immune to the wider economic turmoil, the recent sell-off suggests that even Bitcoin is not safe from a prolonged market downturn.
Bitcoin’s price has been crashing so rapidly that the long-term holders and even some whales are reacting by deploying their assets into exchanges, lowering their risk by hedging against possible further price declines and opening leveraged short positions. Bitcoin’s brief period of stability in late 2020 and early 2021 appears to be over, as the cryptocurrency has shed nearly 60% of its value since peaking at just under $69,000+ per coin in October. The rapid price decline has spooked many investors who had grown accustomed to Bitcoin’s seemingly endless march higher throughout 2020. While it’s still too early to say whether Bitcoin has entered a longer-term bear market, the current price action certainly suggests that the cryptocurrency is in for a period of increased volatility.
Bitcoin’s price has been on a rollercoaster ride over the past year, and it shows no signs of slowing down. Since the major drop below $18,000 on Saturday, it has recovered somewhat but is still far below its peak. While the general trend seems to be downward and people are selling Bitcoin in UAE and other parts of the world, there have been several sudden spikes and dips along the way, the recent $20,000+ spike also seems to be one of those. These fluctuations make it difficult to predict where Bitcoin’s price will go next. However, some experts believe that the recent heavy price action could signal that a final capitulation candle is approaching.