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After turning full circle in 2021, Bitcoin rallies to almost — but not quite — its January 1 opening price.
Bitcoin (BTC) bulls may have scored a minor triumph on Wednesday, as record bids kept the price of BTC/USD at its 2021 starting level.
$31,000 back in play for BTC
Data from TradingView showed the largest cryptocurrency avoiding a trip lower than $29,000 over the past 24 hours.
Concerns quickly grew that Bitcoin would break through $30,000 support and drop to $24,000 or lower, surpassing even its May lows.
These were finally thwarted, courtesy to the “biggest bid ever” to keep bears working, as reported by Cointelegraph.
BTC/USD was back above $30,000 at the time of writing on Wednesday, but whether or not the bottom had been reached was a hot issue of debate.
The fact that Bitcoin has not replicated its May levels, according to analyst Michaal van de Poppe, left the door open for a retest. In general, both then and now, behaviour followed a trading pattern that had not yet broken down.
“Bitcoin is still acting inside this range of wicks,” he summarized before the rebound.
“Didn’t take liquidity fully as there are still some wicks to take the liquidity from. However, the daily candle on Ethereum is interesting, as that one is in support. Let’s see whether we lose this and reach $26K next.”
He added that Bitcoin was “insanely cheap” at sub-$30,000 levels.
Fellow trader Crypto Ed shared his sense of foreboding, arguing that it was not yet time for a true recovery.
EW labelling was spot on so far.
Need to see how this bounce unfolds but should be a corrective bounce before more doom.
Always expect the unexpected so we determined levels where this is invalidated and we turn bull. Just not yet. pic.twitter.com/RnhlPidjb4
— Crypto_Ed_NL (@Crypto_Ed_NL) July 21, 2021
Orderbook data showed resistance building at $31,000 on the day, placing a hurdle in the way of bulls who had propelled the market 5.5% higher to a local top of $30,900. Support at $29,000 and under, despite its prior test, remained in place.
Altcoins stage strong comeback
The relief bounce in Bitcoin was welcomed by altcoins, and van de Poppe’s interest in Ether (ETH) was well-founded, as it gained about 6% in hours.
The largest altcoin had previously lost a trend of increasing lows that had characterised it during the year of 2021.
Meanwhile, the top 50 cryptocurrencies by market capitalisation saw gains of up to 20%, highlighting altcoins’ current sensitivity to Bitcoin’s fluctuations.
The overall market capitalisation of cryptocurrencies has surpassed $1.25 trillion.