Bitcoin Back Above $30,000, but Concerns Remain
Bitcoin (BTC) rebounded from this year’s opening price to hit $31,658, reflecting a gain of 6.4% in the last 24 hours. However, many traders fear that it is only a temporary rebound or a ‘dead cat bounce’ pattern and the numero uno crypto will soon resume its downtrend.
Interestingly, bulls were able to successfully outbid bears and prevent Bitcoin from declining below $29,000, the level at which the crypto started trading in 2021. Nevertheless, there are hot discussions about the likely trend and many are willing to bet further downtrend in the near future.
Nebraskan Gooner, famous crypto analyst and podcast host, opined that “It’s still ‘short the bounce’ season.” Likewise, crypto trader Peter Brandt said that Bitcoin would require another short dip before making a rebound and eventual U-turn. The spot market price fluctuation continues even though Bitcoin blockchain network’s fundamentals continue to gain strength.
It’s still “short the bounce” season.
Goodnight friends. Back at it tomorrow. 🤙
— NebraskanGooner📈 (@nebraskangooner) July 21, 2021
l think your chart may be prophetic
— Peter Brandt (@PeterLBrandt) July 20, 2021
Hash rate was on track to hit 100 exahashes per second (EH/s) while writing this article, still far away from the historical high of 168 EH/s recorded before Beijing started clampdown of mining facilities.
#Bitcoin fundamentals have never looked better.
— Michael Saylor (@michael_saylor) July 20, 2021
Mining difficulty, in the meantime, was on course to rise in the forthcoming automated adjustment, in spite of the price decline. Notably, in case of altcoins, a relief rally was recorded with a large number of top fifty cryptos by market cap posting daily gains of about 10%.
Dogecoin (DOGE) was an exception. The altcoin gained 14% just hours before the onset of the “The B Word” conference, which will see participation of Tesla’s CEO Elon Musk later today. Crypto traders more widely will look for hints from the topics discussed during the conference. Notably, all crypto traders will be tracking Musk’s talks with ARK CEO ARK CEO Cathie Wood and Jack Dorsey, CEO of Twitter and payment processing firm Square.