Bitcoin stays put at the crucial $20,000 mark as it attempted to breach resistance at $21,500. By doing so, the popular cryptocurrency has erased this week’s early losses. But investors are still wary about its volatility and the broader crypto market’s vulnerability to risk.
Craig Erlam, a senior market analyst at Oanda, believes that Bitcoin’s recent resilience doesn’t necessarily mean a further recovery. However, he pointed out that the near-term outlook is still a concern given the broader risk environment and reports of bankruptcies in the industry. Erlam says the latter could be a bigger concern if Bitcoin does eventually break lower.
There has also been a noted decline in whale activity. Caue Oliveira, BlockTrends analyst, said on-chain data suggests a drop in whale activity since the month of May. Kevin O’Leary, a millionaire investor, says crypto markets are likely to see massive volatility and enter into a state of total panic. This will come about before it enters an accelerated growth phase. O’Leary highlighted that companies run by idiot managers will face the heat but this will give rise to stronger companies.
Meanwhile, Bitcoin is trading at $20,711 having gained 1.04% in the last 24 hours. It has been inside the $17,578 to $21,707 range since June 21. BTC tried to move out of this consolidation but failed after facing rejection at the hands of the 30-day Exponential Moving Average. Presently, BTC is hovering around the $20,600 mark. This has gotten investors watching closely and trying to guess where it will go next.
Ethereum is up by 2% and is changing hands at $1,220. However, the majority of the altcoins are in red. XRP is the biggest loser. It’s down by 1.73%. Cardano and Solana recorded a slight dip.