After nosediving to lows of $26K, a scenario that was last seen in December 2020, Bitcoin (BTC) has gained momentum and breached the psychological price of $30,000.
The leading cryptocurrency was up by 9.05% in the last 24 hours to hit $30,270 during intraday trading, according to CoinMarketCap.
BTC address activity has remained strong in the midst of the price drop. On-chain insight provider Santiment acknowledged:
“The silver lining to this -33% drop the past 3 weeks is that BTC’s address activity has remained steady. The divergence between addresses & price is at a 16-month high.”
For Bitcoin to maintain the short-term momentum and short squeeze, market analyst Michael van de Poppe believes it should hold the $30K level. It’s an area to watch because 505,000 BTC were previously purchased at this zone.
Crypto analyst Ali Martinez explained:
“Any rebound could be capped at $30,000 where 390,000 addresses would likely try to break even on the 505,000 BTC they had previously purchased. Notice that closing below the $26,500 support level leaves BTC open for a downswing toward $22,000-$20,000.”
Meanwhile, crypto trader Rekt Capital opined:
“For BTC to develop some semblance of bullish momentum, it needs to keep ~$28600 as support for price to challenge ~$32000 (orange).”
Therefore, regaining the $30K zone is a good start for Bitcoin in its quest to have a sustained bullish momentum.
The recent lows of $26,000 in the BTC market were triggered by Fed’s interest rate hike and the Terra crash, whereby LUNA, despite being one of the top ten cryptocurrencies previously, shed off nearly 100% of its value within a day.
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