Bitcoin has returned to the R336K area, giving investors some hope. The cryptocurrency market sell-off dropped the price of the first cryptocurrency below its all-time high in 2017, putting immense pressure on the whole market. The market did not anticipate such a dramatic drop, especially below the “unbreakable” R304K support, but BTC is again back over the R320K barrier.
The surprising rally was spurred primarily by a lack of selling activity on controlled exchanges since most individual and institutional investors withdrew during the weekend trading session when the Bitcoin network suffered a massive R111 billion realized loss.
Bitcoin went through the short-term resistance of R336K yesterday but swiftly retreated back to R319K, finishing at R327K. Fortunately, traders pushed the price of the orange coin upward, making it more likely to rise more in the future.
Unfortunately, the volume profile implies that most market players are still hesitant to put major capital into the market, as fear reigns supreme. According to institutional investors’ liquidation volume, such as Three Arrows Capital, Celsius, and others, the potentially approaching short-term rally will most likely be initiated by retail traders who catch a knife in the market.
As previously stated altcoins are experiencing more inflows as traders seek more volatile market exposure to maximize returns while cryptocurrencies are bouncing.
Positions such as SNX, STEPN, and even Celsius are showing up to 100% gains in less than 48 hours, which draws more investors than Ethereum, which has shown a low 10% return in the last three days of trading.
At the time of writing, Bitcoin was trading at R337K.