The cryptocurrency market continues to monitor developments in the traditional stock markets

The bitcoin price has steadied these days after a major sell-off that sent the coin to late-2020 lows earlier this month. After finding a bottom just above the $25,000 figure, the BTCUSD pair bounced to briefly exceed the $31,000 handle earlier this week. However, the largest cryptocurrency by market capitalization failed to extend recovery and has settled below the $30,000 level eventually. 

On Wednesday, the digital currency trades under some selling pressure, struggling to regain $30,000 as investors stay cautious after the recent plunge in the crypto space. The rout was triggered by a collapse of Terra that sparked a wave of fear and uncertainty across the industry. 

Technically, BTC’s bullish potential looks limited at this stage, especially as the prices keep trading below the descending 20-DMA, today at $33,600. Of note, bitcoin failed to regain this moving average earlier this month as well as in April. 

On the other hand, BTCUSD is now holding above $28,000, with the technical picture looking neutral on shorter-term timeframes. Should this level remain intact in the coming says, a more sustained bounce could be expected. Of note, the number of people holding at least one bitcoin has reached a historic high, adding to a more upbeat outlook for the coin at this stage.

The cryptocurrency market also continues to monitor developments in the traditional stock markets. Wall Street stocks gained overnight, but a cautious tone continues to persist, suggesting major indexes could fail to see sustained recovery in the coming sessions.  

In the immediate term, BTCUSD could continue to challenge the $30,000 mark, with the nearest significant resistance arriving at $31,300, followed by $32,000 and the mentioned 20-DMA. On the downside, the $28,000 mark remains in the market focus. 


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