Bulls returned on the crypto market with Bitcoin adding 11% and returning back to 11,250 USD. Yesterday, the cryptocurrency was on the downtrend and fell below 10,000 USD for the first time since June 22, when the latest rally started.
As of 07:50 a.m. ET, Bitcoin is traded around 11,248 USD, having set a local high of 11,525 USD earlier in the day. The cryptocurrency turned into a correction on June 30 and just for 2 days wiped out 20% of its value. However, after reaching a bottom of 9,688 USD, Bitcoin bulls returned and started pumping the price against. Thus, the cryptocurrency added 11% for less than 24 hours.
The average daily trading volume jumped to 98 billion USD from 86 billion USD this time on Tuesday. Bitcoin regained its market value, which is now 62.1%, returning on the uptrend and targeting 70%.
The drop follows comments from notable crypto skeptic Nouriel Roubini, the head of Roubini Macro Associates, sometimes known as “Dr. Doom”, who said at a blockchain summit in Taipei that there is “massive, massive amounts of price manipulation” in the crypto space.
But not all are as gloomy about Bitcoin’s outlook. Cedric Jeanson, chief executive and founder of crypto asset management and advisory firm BitSpread Ltd, sees the volatility as an opportunity. He anticipates Bitcoin will surpass its previous record of more than 19,000 USD reached in 2017.
Meanwhile, the long-awaited institutional trading platform Bakkt will begin the beta testing of its Bitcoin futures on July 22 on the exchange of ICE (Intercontinental Exchange). This endeavor has been delayed for long and the entity is yet to announce the final date of launch. In addition to that, reports were doing the rounds last week that indicated the firm might also be building Bakkt Pay, a related wallet for digital assets.
But the question here is that if the digital currency market is ready for the Bakkt’s Bitcoin futures contracts; especially post the discontinuation of BTC futures trading vehicles by the CBOE (Chicago Board Options Exchange) Global Markets in March.
Crypto market recap
The crypto markets saw some much-needed gains as bitcoin rose, with many assets in the top twenty cryptocurrencies by market cap rising around 7%. The total capitalization of all digital assets in circulation rose to 321 billion USD from 303 billion USD on Tuesday.
Ethereum, the second largest digital asset with the current market capitalization of 31.4 billion USD, has gained over 5% to 294.23 USD. However, critical 300 USD remains unconquered as of yet. The price of Ethereum is driven by the improved sentiments on the cryptocurrency market, which means that the recovery may gain traction the nearest future.
Ripple’s XRP continues attacking 0.40 USD. The third largest digital asset with the current market capitalization of 17.0 billion USD has grown by 2% on a day-on-day basis and 1.5% since the beginning of the day. At the time of writing, Ripple’s XRP is trading at 0.3990 USD.
Litecoin gained 4% during the day to 120.31 USD, attacking towards 121 USD. The fourth largest coin with the current market capitalization of 7.5 billion has recovered from the Asian low of 118.76 USD.
Bitcoin Cash and Bitcoin SV are adding 4.15% and 6.8%, respectively.
The EOS is up by 2.4% to 5.90 USD, while Binance Coin gained 3.3% to 32.51 USD.
Another big winner today is Monero, which rose by 6.13% to 89.45 USD, but the cryptocurrency is down by 25% since June 24.
Bitcoin price analysis
Bitcoin recovered from the recent lows and settled well below 11,000 USD handle. However, the bull bumped into a brick wall on the approach to 11,500 USD as the upside momentum has faded away. The first digital coin has gained nearly 10% in recent 24 hours, breaking-off four-day long decline.
At the time of writing, Bitcoin is changing hands at 11,250 USD. Despite the recovery from the recent low of 9,657 USD, the bulls failed to take the price above 11,500 USD handle. Let’s have a closer look at the barriers that might influence Bitcoin’s movements in the short run.
Bitcoin has just hit over 20% gain in less than 24 hours Looking extremely bullish and could be heading towards 11,760 USD (1-day resistance). It is hard to rest when Bitcoin crushes resistance after resistance on lower time frames.
The cryptocurrency had our 30% pullback so what’s next? History says that price consolidates followed by an average gain of 153% before the next big pullback. There are great rewards for buying pullbacks in a bull market.
It remains uncertain whether the bitcoin price would follow the trend it has shown throughout the past several years, particularly before 2019, because the structure of the global crypto exchange market was fundamentally different pre-2017.
Subsequent to the brutal 16-month correction in 2018 during which the bitcoin price fell by more than 80% against USD, major financial institutions and well-regulated companies have entered the space to strengthen the infrastructure of the market.