By Rizqie Atsir Fadhlullah, Busdev Tokenomy
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Bitcoin surged past $21,000 Friday Morning (24/06) to $21,300 high, or a 21.2% rebound of its 2022 lows. Previously, Bitcoin also hit $21,700 high on Tuesday (21/06) before correcting to $19,800 on Wednesday (22/06).
This is the first rebound after Bitcoin, the largest cryptocurrency by market capitalization, fell below $20,000, its lowest price since November 2020. Bitcoin’s price surge reflects traders’ confidence in seeing a low price, even as the market continues to digest the fallout surrounding crypto lending giant Celsius and crypto investment firm Three Arrows Capital .
Last week (13/06), Celsius Network, an interest-earning yield platform, has frozen withdrawals after using a myriad of failed decentralized finance (DeFi) strategies. Meanwhile, insolvency rumors are also beginning to emerge from crypto hedge fund Three Arrows Capital. Crypto lenders are facing increased scrutiny following the collapse of Terraform Labs’ Luna and its sister token UST last month.
Bitcoin Technical Outlook
At the time this analysis was written (24/06), Bitcoin was trading at about $21,320 a coin. As we see on the chart above, Bitcoin heads to its resistance level around $21,700. It is good to see that Bitcoin once again will test the last Tuesday(21/06) high. But in order to continue bullish, Bitcoin needs to manage the $21,700 resistance level, if that happens then $21,700 will no longer be the resistance but the support, then move higher.
Meanwhile, if Bitcoin fails to break its resistance, then it’s highly possible to back down, testing the support level around the $19,800 area.