Bitcoin (BTC) surged 5% to reclaim the $20,000 area as July 4th hype provided surprising gains. The cryptocurrency market bounced back on Tuesday, with most coins trading in the green.
Bitcoin’s Tuesday rally was the first for the coin in five days, with the July 4th daily candle about to close, and provided some dose of optimism in a dreary bear market.
Bitcoin and other cryptocurrencies remained virtually unchanged on Monday, with crypto asset trading downcast prices after heavy selloff in recent months.
The worldwide cryptocurrency market capitalization was trading at $909 billion, an increase of over 6% in the past 24 hours. However, the total trading volume of the cryptocurrency increased by almost 37% to $55 billion.
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Bitcoin Reclaims $20,000 Zone
Data from TradingView indicated that the BTC/USD pair rose to $20,085 on Tuesday, its strongest gain since June 30. The pair spent most of the weekend near $19,000 as the bulls attempted to push the BTC price towards $20K.
After the turbulence in the second quarter, bitcoin price entered the third quarter on a slow note as it continued to consolidate around $20,000.
Since the beginning of 2022, escalating geopolitical concerns and shifting sentiment (driven by rate hikes, conflict in Ukraine and gloomy economic prospects) have jolted crypto assets, causing bitcoin to hit levels last seen in December 2020. But it’s back. ,
BTC continues to trade at less than a third of its all-time high of $69,000 achieved in November last year, but maintains positions above the $18,000 it touched during the mid-June liquidation.
BTC total market cap at $376 billion on the daily chart | Source: TradingView.com
BTC needs to break past $19K
Despite the negative trend, bitcoin managed to recover and surpass the $19,000 range.
According to popular analyst Matthew Hyland, bitcoin has successfully created “the first bullish divergence since breaking below $20,000 on the daily time frame.”
On-chain analytics resource Whalemap verified that whales had gained comfort and market support by purchasing the token at a price of $19,200.
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According to data from Sentiment, a large number of bitcoin long positions were opened on cryptocurrency exchanges on July 4, fueling trader optimism.
One of the largest markets, US traders are now betting substantial on bitcoin’s continued climb.
Meanwhile, some crypto investors who are still long-term bitcoin bulls expect the leading cryptocurrency to require a buildup cycle of one or two years, unless the next BTC halving is done before the leading crypto, May indeed rebound and enter new highs.
Featured image from 123RF, chart from TradingView.com