After days of sharp price declines, bitcoin is showing some renewed fighting spirit. The price is climbing out of a deep trough, and new buying power seems to be entering the market. Currently, the BTC price is attempting to return to the $90,000 level, equivalent to nearly €80,000. However, the cryptocurrency has not yet succeeded in doing so.
The crypto market is currently divided on bitcoin. The worst selling pressure is easing, but little enthusiasm can be detected among investors. Moreover, a group of traders is still speculating on further price declines for the world’s largest cryptocurrency.
Bitcoin Shows Resilience #
The price of bitcoin has risen by 3.5% since last Sunday, after four consecutive days of significant drops. With the recent increase, bitcoin has reached $87,396 at the time of writing.
In the last 30 days, bitcoin has fallen by more than 20%, and the price has yet to recover from this. Last Friday, bitcoin hit a provisional low just above $80,000. Now, however, the price seems to be encountering resistance around the $90,000 mark.
Selling Pressure Eases #
The rise in bitcoin is accompanied by decreasing selling pressure. Analysts at Glassnode write in a market update that the market last week reached a point where buyers have historically been strong. The period of excessive selling seems to be over for now. The crypto specialists at Glassnode make the following BTC prediction:
The market may be forming a bottom structure in the price range of $84,000 to $90,000.
The Relative Strength Index (RSI), an indicator that shows the strength of price movements, indicates that bitcoin entered the oversold zone last week. This means bitcoin was oversold, which is unsustainable for the price. With the recent rise, bitcoin has moved out of this zone.
Bitcoin Traders Bet on Price Decline #
The market appears divided over bitcoin’s short-term fate. The majority of bitcoin traders in the derivatives market are betting on a price decline, according to data from Coinglass. The fee that traders pay each other in this market is negative.
In the bitcoin derivatives market, people do not trade directly in bitcoin, but in special contracts based on the bitcoin price. This allows them to speculate on price declines or increases. When more traders are betting on a decline than on a rise, there is a negative fee for these contracts.