Geopolitical concerns appear to have put an end to bitcoin’s robust comeback, which saw the cryptocurrency gain more than $10,000 in the first half of February. BTC’s price rose above $37,000 on Wednesday, although this did little to alleviate the 15% loss it had experienced in the previous seven days.
BTC Price Action
Over the previous 24 hours, BTC/USD has moved in a range of $34,459.22 – $38,748.46, showing high volatility. Trading volume has surged by 75.66 percent to $37.23 billion, resulting in a dominance of 42.22 percent over the overall market cap of $685.8 billion.
Bears maintained their selloff late yesterday, causing a 10% slide below the $35,000 barrier.
The Bitcoin price action began to retrace early today from the newly discovered bottom. Slow upward momentum was witnessed throughout the day, leading to the $36,000 resistance level that is currently being tested.
Deja Vu to 2021 price action?
Bitcoin (BTC) could end up with a price tag equal to what it had in early 2021, according to a well recognised crypto analyst.
Rekt Capital, a pseudonymous analyst, tells his Twitter followers that the top crypto asset by market cap is currently forming a new area of support near the $38,000 mark, which, if it fails, will become its new resistance level.
He says Bitcoin is currently attempting to transform the $38,000 level into support. If it fails to do so, and $38,000 becomes resistance, BTC will confirm a return to the $28,000-$38,000 zone, which was the site of consolidation in 2021’s first and second quarters. Until then, retesting is underway.
BTC has only seen three consecutive red weekly candles once since 2020, according to the strategist. However, if BTC continues to fall, this week might be the second time such a thing occurs, and Rekt Capital believes the odds aren’t in BTC’s favour.
A weekly close above $38,000, according to the expert, would confirm a successful retest for Bitcoin.