April 17, 2024

While Bitcoin is moving towards Recovery, Many Factors are impacting its Upward Movement

Since May 27, a very surprising price action has been demonstrated by Bitcoin (BTC). It has been observed that for cryptocurrencies, the most volatile periods are during holiday weekends. During these periods, cryptocurrencies grow very volatile.

Therefore, it can’t be predicted precisely where the price of Bitcoin or altcoins would be once the holiday weekend is over. It can be said that during the weekend, the position of cryptocurrencies in terms of price and valuation becomes indecisive.

Bitcoin Witnessed a Significant Rally

As the overall trend for Bitcoin was negative, many expected that the price of Bitcoin may continue dipping. This is when Bitcoin did what it does well and experienced a strong bullish rally.

On May 27, the trading price of Bitcoin was pushed up by a strong 11% rally. The rally continued until May 30 and during this interval, the trading price of Bitcoin went above the $28,600 benchmark.

From there, the trading price of Bitcoin went on to cross the $30,000 benchmark. Followed by the $30,000 benchmark was the $31,700 benchmark Bitcoin was also able to surpass.

The price at which Bitcoin closed on the weekend was the highest closing it had hit in the past 20-days. Moreover, it also gave bulls the opportunity to run a bullish trend for up to 3 days in a row. It was the strongest bullish demonstration by the bulls in more than 2 months.

Although a rally has been observed for Bitcoin, there is still fear among the investors. The fear is due to the possible crash of macroeconomics. The factor can kick in any time and exert its pressure on the investors pulling the bullish trend downwards.

Factors that Can Still Drag Down Bitcoin

The biggest negative factor for Bitcoin at hand is the fear being caused due to the constant rise in commodities. Then comes the reemergence of the COVID-19 pandemic.

China again became a victim of the pandemic. While China is trying its level best to get rid of the pandemic, it is also spreading to other countries.

When the pandemic hit back in 2020, it ended up shutting down more than 95% of the total ports. This caused a huge gap between the supply chains that will keep impacting the global economy for many years.

Then comes the rise in the inflation rates, interest rates, and the tech stock market depressions.

Bitcoin’s Downward Movement Due to the Negative Factors

Due to the above-mentioned and many other factors, the trading price of Bitcoin may not elevate easily. If the situation turns bearish, then the trading price of Bitcoin may fall below $30,000.

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