In the last 48 to 96 hours, Bitcoin has fallen below $ 8000 and made a low of $ 7573. Since then, the cryptocurrency has increased by roughly 15% to around $ 8600. This indicates that there is strong support around the 7500 zones. After a consistent fall from $ 20,000, most of the investors are not confident about finding the exact support of Bitcoin. In the recent days, however, Bitcoin has shown signs of bottoming out as well.
The rise of nearly 15% in just 24 hours indicates that there is enough momentum and investors who are buying Bitcoins at lower levels. Also, according to the technical indicators as well it seems like it is trying to rise above its recent averages which would be a huge positive for Bitcoin if indeed that happens.
Shrugging off the negative news:
The primary reason for the fall in Bitcoin was due to the negative news from various countries all over the world. In the last 48 hours or so, Bitcoin has ignored all of this news as well. This indicates that it is not getting impacted by negative news anymore.
Moreover, it is also an indicator that the momentum is pretty strong in order to discount the negative news. This is another indicator that investors are coming back to invest in Bitcoins. Also, the same is the case with other cryptocurrencies as well.
Cryptocurrencies like Ethereum as well as Bitcoin cash have increased in value similarly in the past 24 hours as well. This is the reason why it seems like a broad-based rally rather than a single cryptocurrency rising. Moreover, the rise in Bitcoin is also coupled with the rise in equity markets in the last 24 to 48 hours which indicates that there might be some correlation between Bitcoin as well as the equity markets.
It remains to be seen whether the intermediate rise has started or whether Bitcoin would again resume the downtrend in the next 48 to 24 hours. For now, however, most of the investors are willing to stick their neck out in favor of Bitcoin. Since it is fallen around 60% from the peak, many of the investors think that a bottom might just be around the corner. Only time will tell whether the cryptocurrency enthusiasts are right or whether the Bears who are still selling Bitcoins are able to call the shots.
On most of the exchanges, Bitcoin seems to be in an uptrend which is certainly positive for the cryptocurrency markets.
Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.