Bitcoin (BTC) has significantly recovered from its recent 20% drop below the $20,000 level. It is now reaching previously lost levels with strong buying pressure amid the financial crisis in the United States banking sector.
The industry’s largest cryptocurrency by market cap has breached the $25,000 zone and successfully retested the resistance wall at this level. Moreover, fueled by a high number of short liquidations of up to $280 million in the last 24 hours, BTC seems poised to reach higher levels ahead of the 2022 downtrend.
Bitcoin was created to endure a banking crisis. Thus, the global cryptocurrency market is thriving and regaining investors’ confidence, turning their eyes to the nascent industry. Is this all part of a new bull market?
Macro Downtrend Is Over For Bitcoin?
Bitcoin is trading well above the macro downtrend line, which was placed at $24,800, after retesting and bouncing off the 111-day moving average (MA) of the Pi cycle that has supported BTC.
According to a Twitter post by crypto analyst Rekt Capital, a monthly close above the $24,800 downtrend line could confirm a new cycle for the largest cryptocurrency on the market.
If BTC holds about the resistance and the broken downtrend line at $25,200, it could go even higher. If Bitcoin can sustain its current price action and consolidate above the current level, it could target the $30,000 level next.
BTC Price Action Boosts Confidence Among Investors
According to reporter Colin Wu, Bitcoin reported a new milestone reached in the past 24 hours. The notional value of BTC options trading volume has climbed to $2.5 billion, the second highest in history.
Moreover, liquidity is leaving the shores of the U.S. jurisdiction into crypto markets, providing the necessary liquidity for the current uptrend. In line with this, the price of Bitcoin has risen over 20% in the last few days, showing investors’ confidence.
In addition, the nascent industry’s total market capitalization continues to proliferate after dipping below the $1 trillion mark. Holding above its 200-day moving average, the market cap seems poised to regain its lost ground.
With all of the above, a new era sisupon the crypto industry, with the largest cryptocurrencies in the market leading the way and hungry for a new macro bull trend in the coming months.
Bitcoin is currently trading at $25,900 after reaching the $26,400 level. This represents a significant gain of 7.4% in the last 24 hours and 16% in the previous seven days.
Featured image from Unsplash, chart from TradingView.com