The price of Bitcoin (BTC) today jumped back to $ 32,000 before falling to $ 31,551. This indirectly re -nurtures hopes among market players that Bitcoin is in a recovery phase and no longer a collapse phase.
However, some analysts are still skeptical about the nuances of Bitcoin's recovery based on certain indications. Most think that this surge is a 'trap'.
BTC is currently trading at $ 31,500, up nearly 7% over the past three days. While it has recovered to over $ 30,000, analysts are of the view that as a precaution, market players should keep an eye on two trading levels. Where Bitcoin needs to confirm at least two more levels for further leaps.
Prior to conquering that level, sentiment towards Bitcoin was seen to be still ‘bearish’ or a bearish phase as for 8 consecutive weeks it closed lower and its price had lost half of its all-time highs.
BTC needs to confirm $ 31,800 first and then $ 34,000. At this point, BTC is struggling to conquer the $ 31,800 trading level. If it succeeds then the next resistance level is $ 34,000.
Most of BTC’s recent gains have been driven by a strong recovery in the stock market. Where the Nasdaq 100- BTC in the stock market rose 7% over the past five days.
Even so it should be noted that the factors that contribute to the weakness of the stock and crypto markets still occur. Rising inflation and interest rates have largely eroded investors ’appetite for riskier assets.
