Bounce or more of the same? Bitcoin on a roller coaster between Musk and Grayscale

Bitcoin on a roller coaster between

The last few weeks have been a roller coaster ride for the crypto market, with prices that have been a litmus test for the formidable $30,000 support and extreme volatility. However, bitcoin has managed to dodge its worst weekly close of 2021, “despite the fact that it has already lost everything it had gained at the beginning of the year,” Bitpanda experts emphasize. The creation of Satoshi Nakamoto has embarked on a rebound, but the question looming in the market is whether, in fact, it is more of the same in its long consolidation.

“Just when almost everyone was taking for granted a drop to $20,000 (the previous all-time highs) the fact that the price is bouncing off the doors of key supports leaves a small ray of hope that something may be starting to change. in bitcoin,” says Will Elon, technical analyst at The Advertiser Mirror. “That we are witnessing the end of the corrective phase that began after setting record highs at $65,500.”

Salvation came from the statements of the founder of Tesla, Elon Musk, that the electric vehicle manufacturer will once again accept bitcoins as payment from its customers. Tesla suspended bitcoin purchases in May over concerns about the use of fossil fuels in mining, triggering a crash in the digital currency. Since then, the largest online currency by market capitalization has embarked on a correction that lasts for two months in a range between $30,000 and 40,000 and that has its low at $28,800. “The bitcoin is down 55% from its all-time high,” they indicate from Bitpanda.

“Price has been moving within a falling wedge pattern for the past 9 weeks, which is generally considered a bullish chart, but can also indicate both reversal and continuation patterns, depending on where it appears within the trend.”, explain the cryptobroker’s analysts. “Market volatility remains high, with sentiment approaching its lowest values,” they continue. According to the Fear and Greed Index, around 90% of retail traders are still bearish, with only 10% staying positive. The figure ranged between 10 and 20 in the past two months, after falling above 60 in May.

Among other factors that have weighed on the price of Satoshi Nakamoto’s creation, experts note that Grayscale Bitcoin Fund (GBTC) has embarked on one of its biggest unlocks to date. “The event has put some pressure on the market, to which retail traders responded negatively by selling their games to avoid further losses,” they indicate from Bitpanda. However, the unlocking does not affect bitcoin, but rather shares of GBTC funds sold on the exchange, meaning that investors who bought shares six months ago now have the option to sell them.

Among other market milestones highlighted by analysts of the crypto-asset trading platform, the launch of Cardano’s Alonzo update stands out , which “paves the way for the functionality of smart contracts.” They also state that Chainlink, Oracle’s leading provider, has incorporated 281 different cryptocurrency projects during 2021. Chainlink’s integrations with third parties currently amount to 650, almost half of which have been incorporated this year. Su is just above 12 euros, below its all-time high of 47 euros. LINK is the fifteenth largest cryptocurrency according to its market capitalization, valued at more than 5.3 billion euros.