Bitcoin shocked many investors on Sunday when it plummeted to below the $20k level but recovered by 3.1% over the last 24 hours and returned to the support level above $20k. It broke the $19,800 and $18,700 levels to begin the present recovery spate.
It rebounded to $21,250 and it’s currently sitting at $20,435.31 mark and the 100 hourly SMA. Currently, it’s experiencing a key resistance around the $24,000 zone. The next key resistance is at the $20,700 mark. If it penetrates the second resistance level, it could rally past the $21,000 level, and if it’s unable to get past the $20,400 resistance, it could test the $20,000 and $19,850 support levels and start and downtrend heading to the $19,525 mark.
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Crypto Had Been Oversold
BTC has proven to be resilient even though some investors had expected it to drop further due to the Fed Chair’s announcement that the agency will continue to be strict on economy players to tame inflation.
A crypto trader for GSR, Luke Farrell, explained that the current situation results from the oversold status which began in June and the hopefulness that CPI print brought about last month.
Right now, the price is sitting at over $1,500 after taking a dip to a lower level this weekend. Ethereum, which is the second biggest crypto in the market according to market capitalization, has been outperforming bitcoin during the last few months because the Ethereum blockchain merger is around the corner. This merger is expected to adjust the protocol type to proof of sake, which saves more energy than the previous proof of work protocol.
Other Altcoins Also Fairing Well
The prices of most of the other altcoins have also been rallying upwards in the last 24 hours. These include AVAZ, LRC, and ATOM, which have risen by over 5%, 8%, and 12%, respectively. Dogecoin rose by 3.5% to hit $0.063, Cardano by 4.8% to reach $0.45, and Solana gained by 6.9% to reach $32.45.
AVAX has recovered after experiencing a difficult phase because, on Sunday, a website claimed that Ava labs are bribing lawyers to reduce regulation and harm competition. Ava labs is the company that has created layer1 blockchain and Avalance.
Meanwhile, KaKaoBank of South Korea has collaborated with Coinone, a crypto exchange. The bank only operates online. It signed a contract with the crypto exchange company to offer deposits and withdrawal accounts to buyers using their actual names, which will follow local rules and regulations. The contract has been finalized, but it’s still unclear when Kakao will give bank accounts to Coinone.
Not The Only Partnership
Besides Kakao, Coinone has another partner called NH Nonghyub Bank. The partnership started in September last year. NH also gives accounts for Bithumb, which is another South Korean exchange. Reports in the country hint that Coinone could cancel the contract with NH.
Last year, the country made it mandatory for crypto exchanges to obtain bank contracts to offer consumers deposit and withdrawal accounts in their real names to lower the chances of financial crimes like fraud or money laundering.