Despite the bad news, Bitcoin still maintains a great market position

Key support in the $ 30K area has confirmed its functionality with a rebound of several thousands, which is a great sign of its resilience.

Despite the bad news, Bitcoin still maintains a great market position

Bitcoin faced extremely serious events last week in terms of China's decision, as well as the incident that took place in Sichuan Province.

It was therefore more than clear that this would be reflected in the market, which reacted with a dump to $ 30K and thus to the level we last traded in January this year.

It is understandable that this frightened many traders, but it must not be forgotten that even after this collapse, Bitcoin is still + 300% compared to last year. Exactly a year ago and on May 25, 2020, BTC traded for $ 8,851 (CMC), at the time of writing we are at 36,600 which is + 313%.

It is therefore not correct to look only at the fact that BTC has lost -43.5% from its ATH to today's prices, but also at its performance over the last year. It is also necessary to realize that the events of the last few days were really serious, but BTC still maintained a great position.

Let's also look at the technical aspect and what we can expect in the next few days.

First of all, I must draw your attention to the fact that although technical analysis is a great help and many times it works in cases as we saw last week, this type of report is simply stronger.

If no more negative news appears in the coming days, it is highly likely that Bitcoin will go to the side with the movement in the current corridor and thus $ 30K - $ 40K. The market needs to be consolidated first and cooled down for a while, so this scenario is highly likely.

On the other hand, if positive and more significant news starts to emerge in favor of BTC, it is possible that many investors will once again go crazy and not resist current prices. This could mean that BTC will go above $ 40K and even higher.

What else does technical analysis say?

  • Next resistance at $ 50K - $ 48K
  • Resistance at $ 42K - $ 43K
  • Key support in the area of ​​$ 28K - $ 30K
  • Next support at $ 22.5K
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