By Samuel Indyk
Investing.com – After falling to its lowest level since June 22nd on Tuesday, the price of Bitcoin has rebounded back above $30,000, amid hopes that support around that level is firm enough to avoid a break lower.
Technical chartists note that a “double-bottom” has formed where the price of Bitcoin has dropped to a similar level twice. In technical parlance, the charting pattern would show a potential change in the trend or momentum, which could lead to increased upside. The low, which has been touched twice, could act as support.
Nevertheless, Bitcoin is still not out of the woods yet, but the fact that Bitcoin has not collapsed on two breaches of $30,000 to the downside might suggest that the “capitulation” some were expecting is still a long way off and might never materialise.
“As we saw last month, a move below $30,000 doesn't guarantee we'll see large losses,” said Craig Erlam, Senior Market Analyst at OANDA.
“Crypto bulls may even be encouraged by the apparent resilience so far, although the trend over the last couple of months doesn't look too favourable.”
Bitcoin trend
The world’s largest cryptocurrency has been trading in a range roughly between $30,000 and $40,000 for months, with a few ventures outside before settling into the long-term range. However, over the last month, Bitcoin has failed to make a firm break above $35,000.
Bitcoin remains over 50% below its all-time peak, hit in April this year.
If Bitcoin can break above $31,000, the 21DMA around $32,800 could act as resistance, ahead of the 50DMA which resides around $34,500.
At 10:38BST, Bitcoin was trading around $30,900, up around 5% in the last 24 hours. Other major cryptocurrencies were also advancing. Ethereum gained 7.8% to around $1870, XRP was up 5.3% to $0.54 and Dogecoin was up 13% to $0.18.