Bitcoin Surges 18% After Falling to Lowest Price of 2021 So Far
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Bitcoin Surges 18% After Falling to Lowest Price of 2021 So Far

1 year ago

Analysts are now increasingly confident that the world's biggest cryptocurrency has "bottomed out."

Bitcoin Surges 18% After Falling to Lowest Price of 2021 So Far

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Bitcoin has staged a rather impressive bounce back after experiencing a scary plunge below $30,000.

The world’s biggest cryptocurrency had slumped to lows of $28,893.62 on Tuesday — setting a new year-to-date low in the process.

But Bitcoin has managed to recover aggressively in the past 24 hours or so. At the time of writing, it’s rallied by more than 18%, with prices returning to $34,211.

According to a number of analysts, this indicates that BTC has now bottomed out — with “strong support observed” as the cryptocurrency was “scooped up” at the $30,000 mark.

In a report released today, Stack Funds pointed to how MicroStrategy is continuing to accumulate Bitcoin, with whales re-entering the market as their appetite for risk returns. The authors added:

“Putting all these factors together, we believe Bitcoin is very close to the bottom, at least in this current wave.”

Bloomberg Intelligence’s Mike McGlone also described $30,000 as a “line in the sand” — drawing parallels to the shock drop to $4,000 that was seen in March 2020. In other words, he believes Bitcoin has the potential to mount a strong recovery following this correction.

Sobering Statistics 

Despite the current optimism that better days are yet to come, it’s worth noting that Bitcoin is currently on track to secure its worst second-quarter performance ever.

Data from Bybt shows that BTC has already fell by 42% in Q2 — a stark contrast from the gains of 42% and 159% seen over this period in 2020 and 2019 respectively. Bitcoin has only booked losses in two Q2s in its history: 2018 and 2013.

Of course, there’s one thing that upbeat Bitcoin analysts can’t forecast — and that’s news. China’s crackdown on crypto has created a slew of negative headlines, and more could be on the way.

The latest Bitcoin Crypto Fear & Greed Index is flashing a score of 14 — “Extreme Fear.” That’s up four points on yesterday.

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