Bitcoin (BTC) has made a significant recovery from its recent 20% drop below the $20,000 level. It is currently reaching previously lost levels amid strong buying pressure amid the financial crisis in the US banking sector.
The industry’s largest cryptocurrency by market cap broke the $25,000 zone and successfully retested the resistance wall at that level. Moreover, with a large number of short liquidations of up to $280 million in the last 24 hours, BTC seems poised to reach higher levels ahead of the 2022 downtrend.
Bitcoin was created to weather the banking crisis. Thus, the global cryptocurrency market is flourishing and regaining the confidence of investors who are turning their eyes to the nascent industry. Is this all part of a new bull market?
Is the macro downtrend for bitcoin over?
Bitcoin is trading well above a downtrend macro line that was placed at $24,800 after retesting and bouncing off the 111-day Pi cycle moving average (MA) that supported BTC.
According to twitter mail A one-month close above the $24,800 downtrend line could confirm a new cycle for the largest cryptocurrency on the market, according to crypto analyst Rekt Capital.
If BTC holds at the resistance level and the broken downtrend line at $25,200, it could go even higher. If Bitcoin is able to maintain its current price action and gain a foothold above the current level, it could reach the next level of $30,000.
BTC Price Action Boosts Investor Confidence
According to reporter Colin Wu, Bitcoin reported a new milestone reached in the last 24 hours. The notional value of BTC options trading volume rose to $2.5 billion, the second highest in history.
Moreover, liquidity is flowing from the shores of US jurisdiction to the crypto markets, providing the necessary liquidity for the current uptrend. In line with this, the price of bitcoin has risen by more than 20% over the past few days, which is indicative of investor confidence.
In addition, the total market capitalization of the nascent industry continues to rise after falling below the $1 trillion mark. Holding above its 200-day moving average, the market cap appears poised to regain lost ground.
All things considered, a new era is dawning in the crypto industry with the biggest cryptocurrencies in the market leading the way and craving a new macro bull run in the coming months.
Bitcoin is currently trading at $25,900 after hitting $26,400. This represents a significant increase of 7.4% over the last 24 hours and 16% over the previous seven days.
Featured image from Unsplash, chart from TradingView.com
Credit : www.newsbtc.com
