Bitcoin’s rise reversed losses of the last three weeks in one day
The price of bitcoin this Monday 30 exceeded the closing price of May 10.
Since the local low on May 27, the bitcoin price has recovered 11.2%.
The rally in the price of bitcoin (BTC) this Monday, May 30, which closed at USD 31,779, managed to reverse the decline of the last three weeks and exceed the closing price of last Tuesday, May 10, of USD 31,041.
The minimum price of bitcoin in the last three weeks was registered on May 27 and was 28,572, so the recovery registered from said minimum until this Monday was 11.2%. At the time of writing, with a slight recovery in the last 24 hours, the price of bitcoin is $31,789
For more than two weeks, the price of bitcoin had reached relative stability, with fluctuations around USD 29,000, although it had not managed to break the resistance of USD 30,000, as reported by ForexDominion. This Monday, the price of bitcoin surpassed USD 31,000 and came close to USD 32,000, before closing the day very close to USD 31,800.
Even after registering a negative record of nine consecutive weeks in decline, the recovery of the last few days is helping to revitalize the market. As can be seen in the price chart, the maximum volume in May occurred on the 12th of this month, when bitcoin touched USD 25,000, establishing an annual minimum. After that peak, the volume dropped steadily.
The increase in the price of bitcoin led to significant liquidations of short positions on Sunday 29, of USD 288 million, the third-largest in May.
This Monday saw a significant reduction in short liquidations, which totaled $43 million, meaning that traders replaced their short bets by taking more long positions. In the last 24 hours, total liquidations rose to $339 million, according to figures from Coinglass.com.
With the improvement in the price of bitcoin, the market capitalization of cryptocurrencies rises 2.9% in the last 24 hours, and reaches USD 1,305 billion at the time of writing. The figure shows a drop of 40.8% compared to the beginning of the year when the market value of cryptocurrencies was above USD 2.2 trillion.
Bitcoin must maintain a higher floor to reactivate the bullish trend, believes specialist
Bitcoin has been in a downtrend since the all-time high reached in November 2021. Above all, during the last eight weeks, for the first time in history, it has had consecutive losses.. This behavior shows that the strength of demand has been weak in this period.
For a breakout of this BTC bear market to actually occur, the analyst of the digital asset firm GlobalBlock, Marcus Sotirou, believes a higher floor needs to be set. “The price needs to hold the $29,300 level on a retest to suggest a continuation to the upside,” the analyst commented. Otherwise, he perceives that the bear market will continue.
For the last, almost three weeks, following the consolidation of the market after the collapse of LUNA and UST, the floor or minimum price of bitcoin has been in the line of USD 28,000. Although since Monday it has remained above that range going from the $29,000 line to $31,000.
In the event that the price does not fall back to the USD 28,000 range in the coming days, we would be facing a new higher floor for bitcoin. Something that, according to Sotirou, would symbolize a possible continuation of the upward trend, so we will have to see how the market behaves soon.
