Bitcoin Reclaims Its 20K Mark After Being Punished Last Week

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Bitcoin has managed to regain and break its 20k mark after a turbulent week. The leading cryptocurrency was seen at the doors of $20,000, rising to $20,200 last Wednesday. However, it quickly declined and ended the trading day at $19,042, a 0.49% loss from its starting price.

During the week, Bitcoin tested support levels above $20k but failed to hold. But at the time of writing, it has broken through the resistance and is now trading at $20,370, up 4.8% in 24 hours. It remains to be seen whether it will hold this position in the coming days.

Related reading: Dogecoin On Fire, Rally After Elon Musk-Twitter Deal Confirmation

Bitcoin Tests 20K Thanks to the US Dollar Index

In the past day, the price of BTC has risen by about 4.10%, effectively crossing the $20,000 threshold. We saw a low of $19,489 and a high of $20,370 in the last 24 hours.

Bitcoin’s price movement in recent weeks can mainly be attributed to the US dollar index reaching a 20-year high of 114.78. However, today’s drop in the DXY index below 111 has helped the stock and cryptocurrency markets recover somewhat.

At the start of the week, BTC had brushed aside macroeconomic concerns. Difficulties at Credit Suisse and the intensification of the crisis between Russia and Ukraine failed to dampen performance. In fact, investors are seeking solace in BTC due to Credit Suisse’s plight.

BTCUSD
The price of Bitcoin is currently above $20,300. | Source: BTCUSD price chart of TradingView.com

Bitcoin (BTC) Price Awaits Bullish Momentum

Bitcoin price needs bullish momentum to overcome its resistance. And according to recent chart trends, we may get one soon. The short-term analysis focuses on a run that could potentially get closer to $21,000. This was the case towards the end of last month, when strong selling pressures continued at that level.

“20500-21000 is a sales zone. If the price gets there, which it should, don’t be too optimistic,” Crypto trader Il Capo confessed informed Twitter followers today October 4. The current push is Bitcoin’s seventh attempt to escape a massive liquidity cloud in many weeks Razzoorn of the Birb Nest. Bitcoin rocketed after a wave of increased risk in the market, with US stocks finishing higher the day before.

More people with Bitcoin

Despite the current bear market in cryptocurrencies, there has been a remarkable growth in the number of Bitcoin holders. This is coming, although the value of Bitcoin (BTC) has seen tremendous volatility this year.

In fact, the number of people holding Bitcoins has been constantly increasing. IntoTheBlock stats show that as of September 27, there were more than 4.5 million new Bitcoin positions. This is because investors continue to find solace in BTC as a repository of wealth and inflation hedge.

Related reading: Ren protocol breaks out, is this a relief?

The price of Bitcoin has struggled to stay above $20,000 in a year marked by significant declines. However, trading volume reached a quarterly value of $42.68 billion last Thursday, marking a bullish milestone for traders. Currently, the market price of Bitcoin is $20,370 and the 24-hour trading volume is $35 million.

Featured image from Pixabay and chart from TradingView.com

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