Bitcoin breaks $30,000 for the first time since…

With a cumulative rise of 80% since the beginning of the year, bitcoin is trading above $30,000 for the first time since June 2022. The cryptocurrency’s advance outpace the nearly 20% rally of the Nasdaq 100, an index that bitcoin swings in parallel. However, bitcoin is a far cry from regaining its all-time highs in November 2021, having recorded a 50% decline since then.

“The $30,000 is very important for both technical and fundamental reasons,” says Matte Greenspan, CEO of Quantum Economics. Resistance has been building for three consecutive weeks and now it has finally been broken. It is the first time we have broken above this level since the collapse of the Luna token from Terraform Labs and cryptocurrency hedge fund Three Arrows Capital. This essentially means that the price has fully recovered from Celsius, FTX and the US regulatory crackdown.”

At 3:56 AM (New York time), bitcoin was trading at $30,113, up 3.44% from the previous session. Meanwhile, Nasdaq futures rose 0.07% to 13,167 points.

Bitcoin’s breakout above the solid $30,000 resistance comes after the Bollinger Band “tightens”. That saw historical volatility drop to its lowest level since January. The tightening then triggered a strong move higher that looks similar to the pattern breakout on Tuesday. Technical traders now may look to the $30,800 range as a possible first target, followed by $31,200.

The crypto-asset industry continues to face a period of intense scrutiny. Crypto exchange Coinbase Global Inc. that it has received a notice from the Securities and Exchange Commission (SEC) indicating its intent to take enforcement action. The Securities and Exchange Commission (SEC) has sued cryptocurrency magnate Justin Sun over his alleged violation of securities rules in a case Sun said was without merit.

Additionally, the US CFTC sued Binance founder Changpeng Zhao and the cryptocurrency exchange for allegedly violating derivatives rules, though Binance said it disagreed with many of the accusations from the US agency.

Despite these setbacks, Bitcoin’s rally has gained momentum in the past month after the failure of three US banks, That revived among “bitcoin bulls” the idea that the token offers a more attractive alternative to traditional finance.

Analysts say a drop in liquidity to a 10-month low — after markets were rocked by the bankruptcies of Silvergate Capital Corp and Signature Bank — could explain the rise, at least in part. As trading volume decreases, price fluctuations can appear more severe.

“The order books are few and the deals are even fewer,” says Strahinja Savic, Head of Data and Analysis at FRNT Financial. “Under these circumstances, it is difficult to attribute price fluctuations to a single cause.”

More at Bloomberg.com

Also read:

The Winklevoss twins loaned $100 million USD for their Gemini crypto platform