The crypto market is seeing tides change as the volatile Bitcoin has once again retraced above the $30,000 mark. But investors remain cold as the market hasn’t seen many gains in the past month.
Bitcoin had slipped to the $29,000 mark yesterday, giving up recent gains. The $29,000 mark needed to hold to avoid a more serious drop. Michael van de Poppe, a crypto analyst, said if the popular crypto dropped further would be troublesome. He highlighted resistances at $30,500 mark and $31,500. It’s a wait-and-watch situation whether BTC will cross this crucial level or hold the $29,200 – $29,300 to avoid massive breakdowns.
Late Thursday afternoon, Bitcoin managed to make an upward trend. At the time of writing this article, BTC was trading at $30,498. It gained 2.31% in the last 24-hours, as per data from CoinMarketCap. Ether also moved upward and is currently changing hands at $1,829. Much of the crypto market is lighted up in green. Solana is the biggest gainer, up by 4.60% in the last 24-hours. Cardano gained 4.35%, Polkadot 3.55%, and XRP 3.27%.
However, trading remains choppy as investors stay away from riskier assets. This can be attributed to inflation and recessionary fears that have grown steadily this year. Edward Moya, Oanda Senior Markets Analyst, believes Bitcoin will get its groove back when the bearish sentiment on Wall Street improves. But it’s likely to take several weeks. The crypto industry hasn’t been immune to the impact of the current, dour economic mood. Moya pointed out that the risk appetite depends on expectations of what the US central bank will do beyond the summer. Analysts say the digital assets space is in a contraction phase that is set into a period of stasis, also known as the “crypto winter”.