Bitcoin rose above $30,000 for first time since June 2022. It has risen more than 80% in the past year.
This rebound is more intense than the nearly 20% gain on Nasdaq 100, with which Bitcoin has had a tendency to move in tandem. It also retraces some losses that the digital token suffered from 2022 after a series crypto-related disasters. Bitcoin is still more than half off its November 2021 peak.
Mati Greenspan (Quantum Economics chief executive officer) stated that 30k is a significant number for technical and fundamental reasons. “The resistance has been building for three weeks straight, and it has finally broken. This is the first time that we have crossed this level since the collapses of Terra/Luna Capital and Three Arrows Capital. This basically means that the price is fully recovering from Celsius, FTX, and the US regulatory crackdown.Bitcoin’s rise above $30,000 resistance came after a “squeeze of the Bollinger Band”, which saw historical volatility drop to its lowest level since January. This compression resulted in a sharp rise that is similar to Tuesday’s upside breakout. Technical patterns are now being followed by traders who may be looking for the $30,800 region as their first target, and then $31,200.
The crypto industry continues to be under intense scrutiny, it is certain. The Securities and Exchange Commission has sent Coinbase Global Inc. a notice advising it that it intends to file an enforcement action. Justin Sun, a crypto mogul, was sued by the SEC for violating securities rules. Sun claimed that this case lacks merit. The US Commodity Futures Trading Commission also sued Binance founder Changpeng Zhou and his crypto exchange, claiming violations of derivatives regulations. Binance, however, has stated that it disagrees with many of the agency’s descriptions.
Despite the setbacks, Bitcoin has rallied since the collapse of three US banks. This reaffirmed the belief among Bitcoin bulls that Bitcoin is a better alternative to traditional finance.
Analysts also believe that the rebound could be explained by a drop of liquidity to a 10-month high — following market makers losing access to US banking rails provided US by Silvergate Capital Corp., Signature Bank — at least partially. Price swings that are more dramatic when there is less trading volume can appear even more dramatic.
Strahinja Savic from FRNT Financial, head of data analytics and data management said that “Order books have been thinned and trading activity has slowed down.” “In these conditions, it is possible to see price movement that is hard to pin down to one reason.