Following a recent dramatic decline, Bitcoin price has risen by around 8% in the previous week, putting it roughly 18% above its low point this year of around $26,700.
After spending most of the month in a bearish trend, the world’s largest cryptocurrency is now worth around $31,500.
Following the crpyo market crisis precipitated by the uncoupling of so-called stablecoin TerraUSD (USDT) from its dollar peg, the leading cryptocurrency fell to its lowest point this year on May 12th, sliding in value to around $26,750.
On Monday, Marcus Sotiriou, an analyst at digital asset broker GlobalBlock said, “Bitcoin broke above $30,000, but it needs to hold the $29,300 level on a retest to suggest continuation to the upside,” Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, said .
“Relief has been long overdue in the crypto market, as the US stock market already rallied last week, after [US federal reserve head] Jerome Powell’s speech that gave the market clarity on their plans to carry out a soft economic landing,” Mr Sotiriou was cited as saying by CoinDesk.
In the previous 24 hours, Ethereum has gained roughly 4% in value and is now worth $1,970. In the previous day, the whole crypto market has increased by around 3%.
Bitcoin has gained 3% in the previous day, bringing it closer to the $32,000 mark.
However, this is still more than half of the way down from the cryptocurrency’s all-time high of almost $67,000 in November.
Following the crypto market crisis earlier this month, which saw over $1.5 trillion wiped from the market, some analysts warned that another “crypto winter” akin to the one that occurred in 2018, another “crypto winter” might be on the way.
Bitcoin began to show signs of recovery in the week following the meltdown, reclaiming a market capitalization of $600 billion on Tuesday.
This follows a rise in Asian markets on news that key Chinese cities, including Beijing, and financial sectors in Shanghai, have begun to relax pandemic restrictions after months of tightening.
According to analysts, the loosening of Chinese city lockdowns might lead to an increase in consumer spending, triggering guarded optimism.
On Tuesday, Tony Sycamore, a City Index market analyst said “Technically, we remain cautiously short-term bullish. Bitcoin looking towards $36,000, possibly $40,000, providing Bitcoin remains above the recent $25,400 low.”
