Bitcoin Soars And Breaks $30,000, But Is It A Fakeout?

After the crash earlier this month, bitcoin (BTC) remained relatively calm last week, moving mostly sideways. bearish however, sentiment still prevails and although fear is easing somewhat, it is still very high. At the time of writing, bitcoin is still on the rise, but given the very low volume on Bitcoin Pizza Day, we have to take into account a so-called fake out†

Bitcoin price rises 2.6%

The bitcoin price recovered to $31,300 last weekend after the crash, but was rejected there and fell back to the area around $30,000. However, Bitcoin struggled to hold up there as well, dropping to $29,000 on Wednesday and even briefly dips below it.

On Thursday, the price could be a rebound but the price was already rejected at around $30,500 and then dipped below $29,000 again. Yesterday, the price initially recovered, but did not go beyond $29,600.

Last night, bitcoin dipped to $29,350 twice and then recovered to $29,600. This morning bitcoin was able to break through this and then started to rise sharply. Bitcoin also just broke through the $30,000 mark and currently stands at $30,150 on KuCoin and $28,500 on Bitvavo at the time of writing. This means that the BTC price is up 2.6% today and is at the same price as a week ago.

Where is the bitcoin bottom?

Earlier this week’s gains came to an end when stock markets like the S&P 500 turned red again. Although the correlation between these two markets has decreased slightly in recent days, it is still very high.

Macroeconomic developments will then most likely determine the direction of the BTC rate in the near future. If stock markets open in the red on Monday, there is a good chance that bitcoin will be dragged along again. There is still a great lack of demand and volume in this uncertain market.

Analysts remain divided where the possible bottom lies for the bitcoin price. It’s certainly possible we’ll see another retest of the recent $27,000, but if macro doesn’t go well, it wouldn’t be a big surprise if bitcoin even tests the area between $20,000 and $24,000. The 200 Weeks exponential moving average now comes in at $27,000 and the 200 weeks simple moving average at $22,000. On the upside, bitcoin needs to break through $31,350 first.

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