The digital currency eco has been showing intense volatility all week long as a series of conflicting fundamentals are weighing on investor sentiment. With the combined crypto market capitalization dropping significant values for the better part of the past week, the current gains are a step up that shows the bulls are still in charge.
At the time of writing, the combined crypto market cap is up 1.92 percent and is pegged at $1.12 trillion. This major jump in price and valuation was stirred by Bitcoin (BTC) whose price action is paving the way for a major momentum amongst other altcoins. According to data from Marketcap, Bitcoin is currently changing hands at a price of $26,813.03, up by 1.66 percent over the past 24 hours.
Many events are responsible for the semi-mild volatility that Bitcoin is experiencing today. There has been a significant selloff that has suggested the digital currency is yet to print any defined support line
The year opened up for Bitcoin with such a bullish momentum, defying every worrisome negative economic indicator that was revealed along the way. One of these indicators is the interest rate hikes based on the Central Banks’ response to inflationary growth.
These interest rate hikes have a way of cushioning capital within the economy, forcing investors to be averse to risk assets like Bitcoin. With so many uncertainties surrounding the premier cryptocurrency, the past few weeks have seen investors dumping the coin, causing an imbalance in its growth thus far.
The speculation as to whether or not BTC is closer to breaching the $25,000 support level or the resistance level at $30,000 remains the subject of major speculation. About 2 days ago, Bitcoin breached the 200-day Weekly Moving Average (WMA) as it touched a low of $26,100.
While we are seeing a steady recovery in the price of the asset at this time, the actions of major whales can be a very positive defining factor in tilting the price either way.
Should we see whale accumulation and a complimentary buying action from retail investors, BTC may touch the $30,000 price range faster. The opposite also holds true should the mild gains being recorded at this time reverse course in the next few days. Either way, the volatility is billed to persist and will help create a well-defined chart to read.
The regulatory climate in the digital currency eco is also a major factor to consider in how the industry is shaped and the impacts on the underlying assets
With the US Congress interested in creating another legislation for crypto and the US SEC adamant that this is unnecessary, Bitcoin and the hoard of altcoins out there may still experience some upheavals moving forward.
