Bitcoin (BTC) continued its jump from its 2021 opening price on Wednesday and reached $31,600, which, according to some concerns, is just a temporary delay on the downside.
1 hour light chart of BTC/USD (Bitstamp). Source: TradingView
Cointelegraph Markets Pro and TradingView data followed BTC/USD data when it rose 7% on Wednesday.
The bulls managed to protect the largest cryptocurrency from further losses of just over $29,000 – the price the market started this year.
However, as Cointelegraph reported, there is a growing concern that the PSU is a “comfort” rather than a real return from its lowest price levels.
“This is still the short bounce season,” famous analyst and podcast host Nebraskan Gunner summed up to his Twitter followers.
Veteran trader Peter Brandt agreed, noting that Bitcoin will need a new striking leg before returning to its true form.
The latest spot volatility is driven by the happiness of the Bitcoin mainnet – it is showing increasing strength this month.
The hash rate was close to 100 tests per second (EH/s) at the time of writing and near an all-time high of 168 EH/s, which was before the notorious mining operations in China.
“The fundamentals of the Bitcoin network have never looked better,” MicroStrategy CEO Michael Saylor said Tuesday.
Calculated bitcoin velocity chart. Source: Blockchain.com
However, despite the lower prices, difficulties are still exacerbated by the following restructuring.
Dogecoin shines ahead of the Musk مؤتمر conference
There is still a successful return to wealth in cryptocurrencies – many of the top 50 cryptocurrencies by market capitalization have seen daily gains of close to 10%.
Related: Bitcoin Bull Describes 7 Steps to Greater Financial Stimulus and Higher BTC Rates
Most notable was Dogecoin (DOGE), which gave 14% of the profits ahead of Elon Musk’s discussion in “The B Word” on Wednesday.
Crypto players will increasingly be looking for clues at the event, as Musk speaks with Ark President Katie Wood and Jack Dorsey, CEO of Twitter and Square Payments.