A short-term recovery wave has swept Bitcoin to the $20,000 level with possible resistance at the $20,500 mark. If it fails to breach this mark, there would be a fresh decline. Yesterday, the popular cryptocurrency was trading close to its support point of $18,800.
For now, Bitcoin gained nearly 6% in the last 24 hours and is trading at $20,217. Ethereum is up by 9%. It’s changing hands at $1,146. The top two popular cryptocurrencies have recorded significant gains in the past 24 hours boosting enthusiasts’ confidence. It’s to be seen whether BTC and ETH can maintain the price growth throughout the week.
The crypto Fear & Greed Index remains fixated in the extreme fear territory. Analysts are not giving much positive outlook either. This may be due to the macroeconomic uncertainty – the Russo-Ukrainian war and rising inflation. Alex Kuptsikevich, FxPro Senior Market Analysts, pointed out that Bitcoin has been under pressure for almost all of last week. He said a brief bounce on July 1 was due to emotional excitement – the start of a new month (July) than fundamental changes in the situation. The analyst noted that the troubled economic backdrop is likely to continue bedeviling crypto markets. Kuptsikevich outlined that the global picture remains bearish as stock markets show no glimpses of tightening financial conditions by central banks. Matthew Hyland, a popular analyst, believes Bitcoin successfully created Bullish Divergence on the Daily Time Frame for the first time since breaking below the crucial $20,000 mark.
Meanwhile, altcoins have also seen gains. Solana is up 8.38%, Cardano 3.80% and XRP 2.24%.