- Bitcoin price pops back above $30,000 in early Monday trading.
- A big wave of risk-on sentiment is rolling through the markets and seeing rallies in risk assets.
- Expect to see a continuation this week as markets get used to the current tail risks fading.
Bitcoin (BTC) price is set to rally and say goodbye to the $30,000-marker for a long time. An early summer rally is underway in several risk asset classes like stocks and cryptocurrencies. The shift in sentiment comes as several tail risks have been further deflated last week with more and more signs of a resolution to the Ukraine conflict, as well as inflation issues and Covid lockdowns getting unwound in Asia, which could filter into BTC price for at least a 20% rally.
BTC price set for a hot summer
Bitcoin price has made a big move in early Monday trading this week as bulls start buying massively, with an uptick of over 3% in ASIA PAC. As several risk elements are being downgraded, more room has been opened up for upside potential that is not going unnoticed by bulls, and by investors sidelined for too long this year. Expect to see this rally being stretched and moving further, at least throughout this week, as more dollar weakness is set to kick in and open up even more room to the upside for BTC price to rally.
BTC price will first face $31,231.98, just above the monthly S2 and trading in the previous distribution zone, which should be favourable in lifting the price quite quickly towards $32,649.28. Then a relatively wide area is open for the taking with only the monthly S1 around $34,483.61 in the way before hitting the cap at $35,725.02 on the 55-day Simple Moving Average (SMA), which has been keeping price action muted since April. So, expect to see some profit-taking around that level before possibly rallying higher.
BTC/USD daily chart
With several historic pivotal levels nearby, the risk could easily be that a firm rejection at a level could trigger a setback for Bitcoin price action. For example, $31,321.98, together with the monthly S2, is a double cap that could see a massive inflow of bears and squash bulls’ uprising. That would mean that price tumbles back below $30,000 to test $28,695.13 to the downside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.