The rebound is also noticeable in ethereum, dogecoin, cardano and the rest of ‘altcoins’
Bitcoin rebounds with joy this Wednesday, after on Tuesday, June 22, the creation of Satoshi Nakamoto experienced strong downward pressure that led the cryptocurrency to pierce the level of $30,000, for many considered a market floor. With the comeback, the popular crypto is up almost 6% and on its way to $ 35,000, far from the six-month low of $28,900 hit yesterday. However, volatility does not disappear in the crypto asset and experts warn that “the downward trends are still in control.”
“We’re not close to getting out of the danger zone yet,” says Naeem Aslam, Avatrade’s chief analyst. This rally for the cryptocurrency is nothing more than a “relief rally”, says the expert, although, without a doubt, “welcomed by many operators in the cryptocurrency market.”
Other analysts warn that China’s clampdown on cryptocurrency activities and a lack of purchase volume suggest that the market has yet to establish a bottom in the recent decline. However, the general recoil of other ‘altcoins’ on Tuesday, with ethereum also at three-month lows, from where it rebounds over 2,000 or the thrashing experienced by cardano or dogecoin, has been interpreted as an opportunity for purchases of short term and total market capitalization seeks to recover the 1.4 trillion dollars.
The intense fire that the digital currency has been subjected to recently, as a result of increased regulations and sanctions around the world and the siege of the Chinese authorities in particular, keeps investors on high alert. However, many voices defend that in the long term this regulatory pressure will cause an exodus of companies and capital from the Asian giant, which will be positive for the rest of the world.
However, it is not all negative news, as institutional investors remain interested in the blockchain industry. This momentum can be seen in Blockchain Capital, a cryptocurrency venture capital firm, which recently raised $300m in funding from industry titans like Visa and PayPal. Since its inception eight years ago, Blockchain Capital has invested in more than 110 startups.
The continued interest of these operators “shows that the future of cryptocurrencies is very likely to be promising,” says Aslam, adding that the recent fall in the value of bitcoin “may be an opportunity for investors to buy the asset at prices of bargain, increasing the number of players in the cryptocurrency industry. “
From the point of view of technical analysis, “the false break of the support level in bitcoin can leave a promising weekly candle,” says José María Rodríguez, analyst at Bolsamanía.
Translation by Caoimhe Toman