- Bitcoin has seen a strong rebound today, and the bulls defended further selling as the cryptocurrency approached the lower zone of $30,000 overnight
- The short-term trend of the entire market will undoubtedly depend on BTC and its continued response to key near-term support
- So far, buying pressure between US$30,000 and US$33,000 is promising and may indicate that further upside is imminent
- An on-chain analyst also pointed out that this happens to be the price zone that a large number of institutional buyers entered earlier this month
- Therefore, these groups may do their best to defend against falling below this level
Bitcoin In the past few days, the entire crypto market has faced tremendous selling pressure.
This caused Ethereum to fall as much as 40% from its highs, and Bitcoin fell below $40,000 and fell to $30,000, with similar declines.
BTC has not fallen below this key support level, and an analyst believes that institutions may be the ones defending it from further declines.
Bulls trigger a trend reversal, Bitcoin gains momentum
Overnight, Bitcoin Witnessing an influx of buying pressure has helped ease recent selling pressure.
This caused the price of the cryptocurrency to soar to $35,000, which is the level it is now trying to surpass.
At the time of writing, the current price of Bitcoin is $34,600, which is trading at just under 2%. The cryptocurrency stole $35,000 several times, but was slightly rejected each time.
If the bulls can flip this level to a support level, it can provide a basis for BTC to begin to recover to $40,000 in the short term.
The agency may be the one holding $30,000
A popular on-chain analyst recently figured out the possibility that institutions should be responsible for preventing a drop below $30,000.
In The most recent tweet, He explained that $30,000 to $32,000 is where many institutions start to accumulate Bitcoin for the first time. Therefore, they are likely to hope that they will not fall below that level.
“There are a lot of institutional investors who bought BTC at a price of 30-32k. The outflow of Coinbase funds on January 2 was the highest level in three years. Speculative speculation, but if these guys fall behind the bull market, they will protect the 30k level. Even If it falls, it will not fall below 28,000.”
Image Courtesy of Ki Young Ju.
The next few days should clarify the next development trend of the entire cryptocurrency market, because Bitcoin is Altcoin In the past few weeks.
Featured image from Unsplash. Pricing data from TradingView.