Bitcoin (BTC) inched up 5% to reclaim the $20,000 territory as the 4th of July hype provided surprise gains. Tuesday saw a comeback on the cryptocurrency market, with the majority of tokens trading in the green.
Bitcoin’s Tuesday rally was the first for the coin in five days, with the 4th of July daily candle about to close, and providing some dose of optimism in the dreary bear market.
Bitcoin and other cryptocurrencies remained virtually unchanged on Monday, with crypto assets trading at downcast prices after a huge selloff in recent months.
The worldwide cryptocurrency market capitalization was trading at $909 billion, an increase of more than 6 percent in the last 24 hours. However, the total trading volume of cryptocurrencies increased by nearly 37 percent to $55 billion.
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Bitcoin Retakes $20,000 Territory
TradingView data indicated that the BTC/USD pair rose to $20,085 on Tuesday, its strongest gain since June 30. The pair spent the majority of the weekend near $19,000 as the bulls attempted to push BTC’s price to $20K.
After a turbulent second quarter, Bitcoin’s price has entered the third quarter with sluggish movement as it continues to consolidate around the $20,000 mark.
Since the start of 2022, increased geopolitical concerns and a change in sentiment (induced by rate increases, the conflict in Ukraine, and a dismal economic prospects) have inflicted a blow to crypto assets, causing Bitcoin to return to levels last seen in December 2020.
BTC continues to trade at less than a third of its all-time high of $69,000, attained in November last year, but has maintained its position above $18,000, the bottom it touched during mid-June liquidations.
BTC total market cap at $376 billion on the daily chart | Source: TradingView.com
BTC Needed To Break Past $19K
Despite the negative trends, Bitcoin managed to recover and surpass the $19,000 threshold.
According to popular analyst Matthew Hyland, Bitcoin has successfully “created Bullish divergence on the daily time frame for the first time since breaking below $20,000.”
On-chain analytics resource Whalemap verified that whales purchasing tokens at the price of $19,200 had given a sigh of comfort and market support.
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According to Santiment statistics, a large number of Bitcoin long positions were opened on cryptocurrency exchanges on July 4th, boosting trader optimism.
US traders, one of the largest markets, are now placing substantial bets on Bitcoin’s continued ascent.
Meanwhile, some crypto investors who are still long-term Bitcoin bulls expect that the leading cryptocurrency will require a one- or two-year buildup cycle until the next BTC halving before the leading crypto can truly rebound and register new highs.
Featured image from 123RF, chart from TradingView.com