Bitcoin Shoots Up to $34K; Is the Asset Coming Back?
Bitcoin has shot back up to about $34,000 per unit at the time of writing. This is a good sign for many crypto traders and analysts alike as the world’s number one digital currency recently fell below the $30,000 mark to hit a new low of about $29,500, its smallest number since early January.
Bitcoin Is Potentially Heading Back Up
Now that bitcoin has shot up by approximately 15 percent, many financial experts are weighing in and wondering if this could signal a return to the bullish behavior bitcoin fans had gotten so used to over the past year.
The asset had been experiencing constant price jumps since April of 2020, and for approximately 12 months, the asset continued to impress even the most cynical individuals to the point that many began comparing it to gold and seeing it as a hedge tool that could protect one’s financial portfolio during times of economic hindrance. Things finally peaked in April of 2021, with the digital currency striking the $64,000 per unit mark.
Katie Stockton – founder and managing partner of Fairlead Strategies, LLC – explained in a recent interview:
The recovery attests to the support near current levels. It shows a welcome reaction to oversold indications!
William Noble of Token Metrics was also quick to ring in. He says that while the recent losses have been rather devastating, things could have been a lot worse. He suggests that people should be happy bitcoin never fell to $26,000, which he considers a relatively hideous number considering this is the average price of Michael Saylor’s bitcoin purchases (Saylor is the CEO of MicroStrategy, the institution to have purchased the most bitcoin at press time).
Jason Lau – COO of crypto exchange OK Coin – mentioned the following:
The $30k/ BTC range has been tested and shown solid support dating back to early 2021, having been tested and bounced off multiple times now.
Looking Towards the Future
He also stated that he will be examining bitcoin on a regular basis granted it remains below $30K for some time, while Pankaj Balani – co-founder and CEO of the Delta Exchange – stated:
Bitcoin bounced sharply from the lows today and is trading close to day’s high. Unlike the previous times, there is little leverage in the system on the long side currently. This was visible from the gradual drop versus the sharp drops that we saw in mid-May. In fact, naked shorts have started to enter the market and the risk of sharp rises due to short squeezes is higher… We expect bitcoin to hold the $30,000 – $42,000 trading range for now and test it a few more times before making any decisive move in either direction. The global macro environment is positive and till the time there is a big change in that, we do not expect bitcoin to break the $30,000 support.
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