Bitcoin is desperately trying to hold onto the $20,000 mark after it was rejected at the $20,400 level. It was recently trading at $20,315 gaining 0.64% in the last 24 hours. Analysts believe the popular cryptocurrency has hit a generational bottom, rising as a good buying opportunity for long-term holders.
Cred, the crypto analyst, says that while it is a toss-up whether BTC has reached a so-called generational bottom, a long time horizon means traders will not regret buying at $20,000. He highlighted that the confluence of macro events like the COVID-19 pandemic, a strong dollar, and increasingly hawkish tightening by the Federal Reserve are influencing the much-favoured cryptocurrency’s price beyond traditional multi-year price cycles. Cred said the sequence of events is on its own just so unfathomable that the industry may only get one in its lifetime. He believes it presents an opportunity. Fidelity investors see an opportunity within the ambit of their risk appetites. A spokesperson for the firm said they have continued to see client demand exposure to digital assets beyond Bitcoin.
With Bitcoin at the $20,300 mark, some traders predict a potential rally to the crucial $28,000 level. Twitter crypto trader Moustache highlighted that the descending channel continues to exert its pressure. But he says there could be enough strength to test the upper channel trendline at $21,500. BTC’s upward price movement coincides with improving conditions for global equity markets on October 4 – the S&P 500 index gained 3.1% and the tech-heavy Nasdaq Composite rallied 3.3%.
The bullish sentiment might have pushed Bitcoin to break the $20,000 resistance. However, this does not mean that professional investors are comfortable at the current price levels.