Bitcoin price has bounced from the lows as it dived below $30k yesterday. The bearish move yesterday meant a drop of about 10% for Bitcoin, following another day of a similar decline.
Yet, the market bounced strongly to the relief of many crypto traders. The problem with ongoing weakness in Bitcoin is that it translates into a massive selloff on other digital assets. For example, at the lows yesterday, Bitcoin has lost more than 50% of its value in less than two months. But other digital assets, such as ETH, BNB, or DOGE, have lost 16.6%, 17.2%, and 31.8% respectively.
Despite the recent selloff, mostly caused by the Chinese authorities clamping down on crypto miners, Bitcoin’s adoption is on the rise. The number of addresses with non-zero balances has exceeded 37 million recently, on a steady rise since 2018.
The technical picture is bullish in the short term, with the measured move for the inverse head and shoulders formation pointing to $38k. Aggressive bulls may want to stay on the long side with a stop at 31k and targeting $40k. Conservative bulls may want to wait for the market to pull back to the projected neckline before going long with a stop at yesterday’s lows and a take profit at 38k.
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