On Thursday, Bitcoin (Bitcoin stock) and other cryptocurrencies were on the rise. Still, a significant decline in the value of other risk-sensitive assets, namely equities, does not speak well for the future of cryptocurrencies.
Over the last day, the price of a Bitcoin stock has increased by 4%, reaching $19,375. The largest cryptocurrency is still trading outside the $20,000 to $25,000 region, where it has spent most of its time since the middle of June. However, it is solidly above its low on Wednesday, which was at $18,750, and is dangerously near the annual low, around $18,500. At the beginning of this week, Bitcoin’s price was hovering around $20,500. There was widespread optimism that cryptocurrencies had reached the bottom of their bear market and were beginning to recover. However, this positive feeling has since waned in the wake of the most recent selloff.
Bitcoin Stock Price Analysis
According to Edward Moya, an analyst at broker Oanda, “Bitcoin is higher but still below the $20,000 mark as investors swiftly flood back into riskier assets.” This was said in a note. “Bitcoin is still below the level.” This wide risk-on surge doesn’t appear to have the legs to stand on, but this rebound might linger a little longer than expected.
In point of fact, there wasn’t much support for the widespread risk-taking rise. On Wednesday, both stocks and cryptocurrencies had strong gains as the Bank of England unexpectedly intervened in the bond market to restore order, which caused rates to fall throughout the globe. Because rising bond rates have the tendency to reduce demand for riskier bets like Bitcoin and stocks, this move lower has served to encourage an increase in the value of hazardous investments.
Futures were tracking the Dow Jones Industrial Average DJIA, and the S&P 500 SPX predicted heavy losses on Thursday, suggesting that the recent rebound will be short-lived. Given the association between Bitcoin and major stock indexes that has solidified itself this year in the midst of a negative macro backdrop, it may only be a matter of time until the same feeling that is sinking equities extends to digital assets. This is because of the bleak economic backdrop.
How Bitcoin finishes the third quarter, which spans from the beginning of July to the end of September, will be closely watched by the cryptocurrency market. The third quarter is coming to a close in a matter of days.
According to the analyst that creates the well-known cryptocurrency technical analysis weekly, Rekt Capital, if Bitcoin is unable to close above a price level of about $19,880, it faces the risk of falling below a three-month support level of around $17,000. Rekt Capital is the publisher of the newsletter.
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Author Marianna Vilchez 
