- Bitcoin is staging a comeback this weekend after ending the week testing the $32,000 support.
- As Bitcoin approaches $34,000, two analysts share their views on key levels that investors should watch out for in the coming weeks.
Starting Thursday, Bitcoin seemed to break downwards as it slipped from weekly highs of $35,000. Wiping out $2,000 in a matter of hours, the digital asset found support just above $32,000. There was little development in the wider market to explain the sudden crash. But for the last couple of weeks, Bitcoin has been bouncing between $31,000 and $35,000. The crucial question remains, where will it break first, below $30,000 or above $35,000?
Over the weekend, Bitcoin’s all-crucial support set at $32,000 helped it stage a comeback. At the time of press, Bitcoin is trading well above $33,000 according to our data. This follows a more than 2 percent price increase in the last 24 hours.
If the crypto king can maintain the moment, it should edge close or climb above $35,000 at the start of the coming week. However, the digital asset is recording an unprecedented low trading volume. Data shows that spot trading volume fell by 42.7 percent in June, with derivative volumes following suit with a 40.7 percent drop.
This has primarily been driven by the recent Bitcoin mining crackdown witnessed in China. Additionally, with volatility remaining relatively low, there was little activity from investors who prefer to sit and wait out the calm.
With Bitcoin and the entire market at large going into the new month following the same trend, analysts are warning that the current phase could last months further adding that “around $33,000 to $34,000 is a very important retracement level.”
Bitcoin cycle could last years
Craig Johnson, chief market technician at Piper Sandler, in an interview with CNBC noted that Bitcoin had wiped out more than 45 percent from its $64,000 high. He highlighted the two prior cycles in which lasted 1,000 days.
You’ve got to be prepared to batten down the hatches and kind of wait for this to consolidate for quite some time longer before you start the next big major leg higher.
Also sharing his sentiments with CNBC, Blue Line Capital President Bill Baruch noted that he and many other investors were keen on the $25,000 position to accumulate more Bitcoin. “Give me $25,000 on bitcoin, and I’d be buying more,” Baruch said. He has already taken a position in the $32,000 but is targeting the $25,000.
Bitcoin can easily be moved by a single event but since the China mining crackdown, recent developments both positive and negative have not impacted the digital asset in a major way. One of these is the recent confirmation by Square that it was developing a hardware wallet. One of the most trusted companies in the space, its hardware is set to encourage the adoption of the digital asset especially with investors who find the current solutions a security concern.
As CNF reported, the upcoming GBTC unlocking happening later this month is set to be one of the major tests but experts are still unable to agree whether it will impact prices.