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Bitcoin Rallies Aggressively After Defending ‘Parabolic’ Price Support

Summary:
The bitcoin price surged back above ,000 on Wednesday. Analysts say BTC defended a crucial support level. Today’s price action wasn’t enough to persuade the bears that the bottom is in. The bitcoin price rallied aggressively on Wednesday after the beleaguered cryptocurrency defended a vital support level that has fortified its nearly five-year-old “parabolic” uptrend. Bitcoin Bounces Off ‘Parabolic’ Support Just hours after careening to seven-month lows below ,500, the notoriously volatile asset jerked toward a recovery, ascending a wall of sell orders in near-instantaneous fashion. The bitcoin price bounces off a seven-month low to retake the ,000 level. | Source: TradingViewAccording to price data from cryptocurrency exchange Bitstamp, bitcoin last traded at ,160 for a daily

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  • The bitcoin price surged back above $7,000 on Wednesday.
  • Analysts say BTC defended a crucial support level.
  • Today’s price action wasn’t enough to persuade the bears that the bottom is in.

The bitcoin price rallied aggressively on Wednesday after the beleaguered cryptocurrency defended a vital support level that has fortified its nearly five-year-old “parabolic” uptrend.

Bitcoin Bounces Off ‘Parabolic’ Support

Just hours after careening to seven-month lows below $6,500, the notoriously volatile asset jerked toward a recovery, ascending a wall of sell orders in near-instantaneous fashion.

The bitcoin price bounces off a seven-month low to retake the $7,000 level. | Source: TradingView

According to price data from cryptocurrency exchange Bitstamp, bitcoin last traded at $7,160 for a daily gain of 8.3%. That empowered BTC’s market cap to recover above $130 billion.

Bitcoin currently accounts for just under 68% of the overall cryptocurrency market, which now boasts an aggregate value of more than $191 billion. BTC’s upward pivot dragged altcoins along for the ride, and major assets like ethereum, ripple (XRP), and litecoin all rose more than 7%.

Altcoins joined in Wednesday’s recovery. | Source: CoinMarketCap

Altogether, the crypto market recorded $1.3 billion in spot volume over the past 24 hours, along with just under $500 million in bitcoin futures trades on regulated platforms CME and Bakkt.

Bitcoin Defends 5-Year-Old Trendline Twice in a Month

Wednesday’s broad crypto market recovery did not have a clear fundamental catalyst. Cryptocurrency trader Peter Brandt said that the bounce came after bitcoin defended an “important” technical support level.

Source: Twitter

According to Tuur Demeester, a founding partner at Adamant Capital, that support level is the trendline that has accompanied bitcoin’s “parabolic” march from less than $200 in January 2015 to $7,000 today.

“What a thriller, Demeester said, noting that BTC has defended this support twice in the past month.

Source: Twitter

Mark Dow: 2019 Was Just an ‘Echo Bubble’

Today’s relief rally brought a welcome sentiment shift to a market battered by losses during the latter half of 2019. But that doesn’t necessarily mean the cryptocurrency’s outlook has fundamentally changed.

Mark Dow, the economist and hedge fund manager who famously called the bitcoin top and shorted the cryptocurrency into its slough of despond, maintains that this year’s recovery – or at least what remains of it – is nothing more than an “echo bubble” that will eventually evaporate entirely.

Source: Twitter

Peter Schiff, the founder of Euro Pacific Capital and an avowed goldbug, jubilantly declared that there’s still plenty of time for bitcoin’s yearly candle to glow bright red before the end of 2019.

Source: Twitter

Crypto markets, after all, are open seven days a week – including holidays.

This article was edited by Sam Bourgi.

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