As concerns surrounding SEC regulatory actions began to subside, Bitcoin prices surged by 7%.This positive development has made investors doubt whether it is the right time to enter the market and invest in Bitcoin
As concerns surrounding SEC regulatory actions began to subside, Bitcoin prices surged by 7%.
This positive development has made investors doubt whether it is the right time to enter the market and invest in Bitcoin.
With the recent price surge and the easing of regulatory concerns, many people are considering whether this is a good time to buy the leading Cryptocurrency.
Bitcoin Price Update
Bitcoin (BTC) stopped its previous downward trend and rebounded significantly on Tuesday.
This impressive recovery led to a 7% increase in the value of Bitcoin, rebounding from above $25420 to $26.800.
The positive momentum continues, with Bitcoin prices rising by 4.59% to reach $26.920.
Although major Cryptocurrency platforms such as Binance and Coinbase have recently faced legal problems, and the U.S. Securities and Exchange Commission has sued them for suspected violations of the securities law, investors chose to ignore these concerns.
To everyone's surprise, Bitcoin (BTC) and Ethereum (ETH) rebounded rapidly in the market
The recovery of Cryptocurrency market is impressive
The global Cryptocurrency market has recovered its lost ground and demonstrated extraordinary strength. It has been actively trading in the past 24 hours.
The market value of Cryptocurrency has reached an impressive $1.17 trillion, an increase of more than 3%.
It is worth noting that the Cryptocurrency fear and greed index experienced a sharp rebound, returning to the neutral zone, up 9 points from the previous day.
Although the U.S. Securities and Exchange Commission recently filed a lawsuit against Coinbase and Binance, the Cryptocurrency industry showed resilience through rebound and significant gains.
This proves that the Cryptocurrency industry has the ability to meet challenges and overcome obstacles.
The Impact of Market Recovery and Short Clearing on Bitcoin (BTC)
During the recent market recovery, some traders in the Bitcoin market took short positions and expected Bitcoin prices to decline,
However, the market unexpectedly saw a significant increase.
As a result, due to the forced liquidation of positions by the trading platform Binance, these traders were forced to sell their Bitcoin at higher prices. This process is commonly referred to as' liquidation '.
Surprisingly, the unwinding of these short positions served as a catalyst for further upward momentum in Bitcoin prices.
As these positions are liquidated, it creates additional demand for Bitcoin, thereby driving up its price.
According to Santiment, a Market data provider, when the price of Cryptocurrency fell recently, the interest of buyers increased.
This shows that many investors see the price decline as an opportunity to buy Cryptocurrency at a lower price.
As a result, this news had a positive impact on BTC, causing its price to rebound to over $27.000,
The market recovery and the closure of short positions played an important role in this rebound.
In addition, the increase in purchasing interest during the period of price decline reflects investors' optimistic attitude towards the sustained growth potential of Tecoin,
Bitcoin Price Forecast
Bitcoin is currently hovering around the $26.900 level, showing a rebound from the $25400 level.
However, it encountered resistance near $27350, indicating potential selling pressure and the possibility of sellers dominating the market by forming a bearish swallow candle at this level.
There are disagreements when examining other technical indicators and moving averages. Two indicators are still bullish, indicating that buying pressure may still prevail.
Nevertheless, breaking through the key resistance level of $27.350 is crucial for Bitcoin to maintain its upward momentum.
If there is a downward trend, it is expected that the direct support level will be around $26.600, coinciding with the 50 day moving average of the index,
If it breaks through this level, it may fall to the previous support level of $26.175, and then further fall to the next support level of $25.400.
On the other hand, if Bitcoin successfully breaks through the resistance level of $27350, the next target will be a psychological resistance level of $28000, followed by a potential target of $28400.
Traders must pay attention to the price trend near the critical level of $27.350, as it may become a turning point in the market.
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