Bitcoin (BTC) is striving to maintain a price over $20,000, and investors are monitoring the commodity to see whether it will go below the critical level as the leading cryptocurrency continues to drive the market recovery.
After briefly topping $24,000 after weeks of consolidation between $20,000 and $23,000, Bitcoin has shown indications of several bullish goals, according to an analysis. At press time, the leading cryptocurrency was trading at $23,600, a nearly 4% increase over the previous 24 hours.
In this paragraph, crypto trading specialist Michal van de Poppe asserts, based on recent price activity, that Bitcoin still faces a significant barrier at $23,800. In a tweet published on July 22, Poppe indicates that if the asset surpasses $23,800, investors may anticipate $28,000.
Bitcoins alternate scenario
Poppe claimed that Bitcoin might correct below $21,000 if it fails to surpass the resistance level. Poppe also believed that the market may have reached its present heights if not for events such as the Terra (LUNA) ecosystem collapse. Bitcoin might have retested the $32,000 level, according to the trader, provided market conditions had stayed stable and there had been no forced selling.
Intriguingly, the cryptocurrency expert observed that the Terra fall no longer affects the price of Bitcoin. However, he said that recent Bitcoin sales by Tesla (NASDAQ: TSLA) and bankruptcy filings by lending platforms Celsius had impacted on the cryptocurrency.
Investors betting on the future of Bitcoin
According to another crypto researcher, Ali Martinez, investors are speculating on the future of Bitcoin based on future market activity.
Since July 12, derivatives exchanges have established 1.44 billion BTC positions, indicating increasing liquidity and interest in the futures market. The demand surge isn’t represented on-chain, said Martinez.
The market expert believes that “Bitcoin looks to have broken through all significant resistance hurdles” and that the BTC price might hit $26,800 if open interest continues to increase.
Martinez also noted that the possibility of a dramatic price crash remains so long as BTC whales and miners continue to sell and the network’s size continues to shrink.
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