Bitcoin returns back to $21,000 range, providing some hopium for investors
The massive sell-off in the cryptocurrency market pushed the price of the first cryptocurrency below the all-time high of 2017, putting enormous pressure on the entire market. The market was not expecting such a strong dive, especially below the “unbreakable” $19,000 support but luckily BTC is back above the $20,000 threshold.
The unexpected bounceback was mostly fueled by the lack of selling volume on centralized exchanges, as most retail and institutional investors capitulated during the weekend trading session when the Bitcoin network experience an enormous $7 billion realized loss.
During yesterday’s trading session, Bitcoin broke through the short-term resistance of $21,000, but then quickly pulled back to $20,000, closing at $20,555. Luckily, traders have pushed the price of the orange coin further, making it eligible for a bigger upside in the future.
Unfortunately, the volume profile suggests that most market participants are not yet ready to push significant funds onto the market, as the fear still prevails among them. According to the liquidation volume of institutional investors like Three Arrows Capital, Celsius and others, the potentially upcoming short-term rally will most likely be started by retail traders that will catch a knife on the market.
As U.Today previously mentioned, altcoins are seeing strong inflows as traders seek more volatile market exposure to maximize their profits as cryptocurrencies rebound.
Such positions as SNX and STEPN or even Celsius are showing up to 100% of returns in less than 48 hours, which attracts more investors than Ethereum that showed a mild 10% return in the last three days of trading.
At press time, Bitcoin is trading at $21,180.
