BTC Price Attempts to Recover Losses After Deleveraging Event
The price of Bitcoin (BTC) increased by 1.7% on Thursday, reaching $26,438 as it tries to regain the losses from the previous week’s deleveraging event. The prominent cryptocurrency had dropped to $25,000 after a period of low volatility with support at $29,000 and resistance at $30,000.
Dan Morehead: “Markets Can’t Be Down Forever”
Dan Morehead, the founder of Pantera Capital, believes that the market has reached a turning point. In a statement, he stated that there is only a limited amount of time that markets can remain down.
Bitcoin’s Performance This Summer Has Been Disappointing
Bitcoin’s performance this summer has been notably poor compared to previous periods. It experienced the longest period of negative year-over-year returns, lasting 15 months.
Bitcoin Price Bullish Comeback
- BTC bulls defended the $25,000 support level, preventing a potential decline to $20,000.
- Bitcoin reclaimed resistance at $26,000 and climbed to $26,800.
- Extreme oversold conditions in the Relative Strength Index (RSI) could be the catalyst for buyers seeking exposure to BTC.
Bitcoin Mirroring Gains in US Equity Market
Bitcoin may be reflecting the gains in the US equity market, with the S&P 500 and Nasdaq Composite increasing by 1%. This follows the release of S&P Global’s flash US Composite PMI Index, which suggests a potential pause in economic expansion.
Bitcoin Liquidations Signal Improving Sentiment
- Bitcoin saw $37.7 million in total liquidations, with liquidated long positions amounting to $9.64 million.
- Market participants perceive this as a positive signal for improving sentiment.
Hot Take: BTC Price Recovery Faces Challenges
While Bitcoin is attempting to recover its losses, there are several challenges ahead. Seller congestion at $26,800 needs to weaken for further gains. Traders should also consider waiting for buy signals from indicators like the Moving Average Convergence (MACD) and the Relative Strength Index (RSI). Additionally, the Federal Reserve’s economic policy decisions could impact the recovery period for Bitcoin and the cryptocurrency market as a whole.
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