Bitcoin bounces to $ 31.6,000, but warnings of another BTC price drop are everywhere



[ad_1]

Bitcoin (BTC) continued to rebound from its 2021 opening price on Wednesday, hitting $ 31,600 in what some fear is only a temporary reprieve on the downside.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingView

“Short the bounce?” “

Data from Cointelegraph Markets Pro and TradingView tracked BTC / USD as it gained a respectable 7% on Wednesday.

Bulls had successfully defended the largest cryptocurrency against further losses at just over $ 29,000 – the price the market started the year at.

As Cointelegraph reported, however, there are strong concerns about the current strength being a “rally of relief” – not a real comeback after a floor price.

“It’s still the ‘short rebound’ season,” popular analyst and podcast host Nebraskan Gooner abstract to Twitter followers.

Veteran trader Peter Brandt concurred with this advice, suggesting that Bitcoin would need another shock before the true return to shape kicks in.

The latest spot volatility comes as Bitcoin network fundamentals delight market participants – with them showing still increasing strength this month.

The hash rate was approaching 100 exahashs per second (EH / s) at the time of writing, approaching all-time highs of 168 EH / s before the notorious mining rout in China.

“The fundamentals of the Bitcoin network have never looked better”, Michael Saylor, CEO of MicroStrategy declared Tuesday.

Bitcoin estimated hash rate table. Source: Blockchain.com

The difficulty, on the other hand, was still on the way to increase during its next readjustment despite the drop in prices.

Dogecoin shines ahead of Musk conference date

In altcoins, a welcome reversal of fortunes was always in play – many of the top 50 cryptocurrencies by market cap recorded daily gains of nearly 10%.

Related: Bitcoin Bull Describes 7 Steps To More Fiscal Stimulus And Higher BTC Prices

Dogecoin (DOGE) stood out, which generated 14% returns ahead of promoter Elon Musk’s discussion at “The B Word” on Wednesday.

More generally, crypto players will be watching for clues from the event, which features Musk in talks with Ark CEO Cathie Wood and Jack Dorsey, CEO of Twitter and payments firm Square.

1 hour DOGE / USD candle chart (Bittrex). Source: TradingView