- Bitcoin volatile at $20k; the price is rising and falling at the threshold
- Binance president Zhao has already said that crypto winter is the best time to buy BTC
- The current appreciation is a result of positive sentiments due to the start of a new quarter in July, Q3
- Bears are shorting the king coin by buying products such as inverse ETFs
- Breakout remains possible if bulls join the action
Recently, Bitcoin overturned a minor slump to pass the $20K mark. But the price movement is entirely at loggerheads with the general sentiment in the market. Many believe that the public’s positive emotions due to the start of a new quarter are driving the price high. But along with the positivity, there is also a sense of fear that the Bitcoin bears might be looming. However, either way, we can’t say anything for sure, but it is definitely not the final death knell for the king coin.
Bitcoin Crosses $20K Mark Once Again
For a long time, the $20K mark has been a psychological threshold for Bitcoin investors. During the summers, BTC is playing hide-and-seek with the $20,000 mark.
Bitcoin was up by 5% in the last 24 hours, reaching a high of $20,300. Considering that the Bitcoin price dipped below $19,000 just last week, the latest rise is a good sign.
Experts believe that the Bitcoin price rise was due to the emotions flying high at the beginning of a new period. July 1 marks the start of Q3, the third quarter of 2022.
The price rise of Bitcoin, along with altcoins, is counterintuitive to market perception. As per the Fear & Greed index, the market has extreme fear.
Just a few days ago, Binance president Changpeng Zhao said that the crypto winter was an excellent time to purchase the king coin.
If the bulls start dominating the market, the BTC rate can shoot to the sky and prove the skeptics of the crypto industry wrong.
Not so long ago, Bitcoin hit its highest high of $69K in November 2021. But since the 0.75 interest hike by the US Federal Reserve, crypto prices have been on a downward spiral.
Even on Friday, there was some bad news for crypto and Bitcoin. A cryptocurrency hedge fund firm Three Arrows Capital filed for bankruptcy on Friday.
But despite the events, Bitcoin and altcoins such as Ethereum and even the reborn Terra Luna token showed some appreciation.
The Bitcoin hike comes despite institutional investors shorting the king coin. We believe that almost 80% of weekly investment inflows were a result of the actions of such investors.
Currently, Bitcoin is so volatile because of a combination of many factors:
• US Feds constant tinkering with interest rates
• US Sec regulating Bitcoin and cryptocurrencies by forming new regulations
• PoW consensus mechanism of Bitcoin requires excessive mining activities. As a result, the environment is getting impacted. And people are thinking about the adverse effects of BTC and crypto as a financial concept.
• Institutional investors impacting its price at their whims and fancies
• Bears are joining the party and shorting bitcoin with financial products such as inverse ETFs
• Sometimes the market shows promising signs due to the turn of the new season. For instance, the beginning of Q3 led to a minor resurgence.
Bitcoin volatile at $20k is causing altcoin fluctuation in some way. But many believe king coin falling below $20k was writing on the wall, a clear sign of looming downtrends. But amid the current Bitcoin volatility, we can’t say anything for sure. If the bulls join the action, things can improve quickly, just like in 2021. Are the bulls listening?