Amid crypto crash gloom, Bitcoin is finally witnessing an uptrend this week with its price seen stabilising over the $31,000 level for the past two days. At the time of writing, Bitcoin was trading at around $31,500, up over 6 percent in the last seven days.
Trends show that Bitcoin investors are coming back even as alternative coins (altcoins) continue to bleed, apparently due to lack of investors’ interest. In fact, recent Glassnode data indicate that investors have been strongly accumulating Bitcoin recently.
However, the current upward momentum may be limited, experts say. In other words, a very quick rise in Bitcoin price cannot be expected so soon.
“Bitcoin was changing hands above US$31,000 in the past 24 hours after weeks of oversold conditions. BTC started the week at US$29,000 and surged to US$31,949 yesterday as buyers returned to the market,” Edul Patel, Co-Founder and CEO of crypto investment platform Mudrex told FE Online.
“Even though upward momentum appears to be limited, the initial support at US$30,000 could delay further breakouts,” he added.
Bitcoin has been constantly over the $30,000 mark, even hitting a $32,200, this week. Meanwhile, its market dominance has increased to 46.23 percent.
While altcoins are finding it hard to attract investors once again, especially after the Terra (Luna) debacle, data shows Bitcoin is having a major share of crypto inflows. The increased investor confidence is also reflecting in the market sentiment, which is moving away from the “extreme fear” zone.
“BTC holding above the $31,000 level is a positive sign. Data shows that the number of addresses holding less than 100 BTC increased recently, indicating that long term investors were still bullish about BTC. After 9 consecutive weeks of losses, and oversold conditions, investors seem to be returning,” Darshan Bathija, CEO and Co-Founder of crypto exchange Vauld said.
“Though BTC showed optimistic signals, altcoins continued to underperform in comparison, indicating that investors were still taking a risk-off approach. Typically alts underperform BTC during downtrends as investors remain cautious as they have a higher risk profile,” he added.
Analysts predict the next resistance for Bitcoin at $40,000.
“Institutional investors have started accumulating Bitcoin again after a few weeks of lull. The weekly trend for Bitcoin has formed a descending triangle pattern. The next resistance for BTC is expected at $40,000,” WazirX Trade Desk shared in a note.
A report by digital asset management firm Coinshares says crypto assets saw an inflow of $87 million of which Bitcoin had the major share of around $69 million.
(Cryptos, including Bitcoin, and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)