As could be read this morning on BitzArena, bitcoin (BTC) dropped significantly in the last 24 hours. After the exchange rate found support at $ 10,300, bitcoin went back on its way up, where it initially came up against resistance.
This resistance was $ 11,500. Last night the course did not succeed in breaking through, but the second time the bulls did. As a result, bitcoin rose considerably and managed to make up for the declines in recent days.
At the time of writing, the price of bitcoin (BTC) is $ 11,892 according to CoinMarketCap. This means that bitcoin is even slightly green, which is in sharp contrast with this morning. BTC managed to increase by 1.21% in the last 24 hours. The rest of the cryptomarket also seems to be improving, with Bitcoin SV (BSV) even 7.68% in the plus.
During the recent bounce, bitcoin managed to get above the 100 Moving Average (MA) line again. It is now up to the bulls to keep the course above this line in order to realize further increases.
It is striking that the volume on Coinbase at the moment, during the current rise, is not as high as during the sharp fall in recent days. In addition, the price is still trading under the rising trend line that formed the bitcoin price in the past. Bitcoin now seems to encounter some resistance.
The increased volatility, however, causes strong price fluctuations, which is a mere signal to some, such as the Securities and Exchange Commission (SEC). One of the reasons that they have rejected all submitted Bitcoin ETFs is that the regulator believes that the price is still too easy to manipulate.
Others see this volatility as a positive sign. There is the bitcoin analyst Conner Brown. In a tweet he gave three reasons why volatility is good:
Volatility is good.
1) It filters out weak hands and ensures that the Bitcoins go to the strongest hodlers.
2) It is free Bitcoin advertising. Volatility makes headlines.
3) It is a direct function of the unrivaled absolute scarcity of Bitcoin. The offer is static, so the price is volatile.
For now, the next resistance is around $ 12,000. Strong support is still around $ 11,500.