The cryptocurrency market has clawed back $287 bln in losses, with market cap currently totaling $1.517 trln. The bitcoin price is back above $36k again. Most players are apparently reconciled with the bearish trend as China has been cracking down against Bitcoin since 2013.
A slew of negativity thumped bitcoin down to $30k. Over the weekend, the price fell to $31,100 by inertia on the latest news from Hong Kong as authorities plan to impose restrictions on cryptocurrency trading for unqualified investors.
The price action remained above $30k as bitcoin drew support from altcoin buying. At the time of writing, Binance showed bitcoin trading at $37,558, with a 21% rebound, while ether has risen 37% to $2,367. The ether price is recovering faster due to gains in the BTC pair.
The VIX fear index dropped to 10. On March 17, 2020, the index dropped to 8 when Bitcoin was trading at $5,312. On March 13, the price fell to $3,782, amid a sharp sell-off on the US stock market. Buyers have pared a 62% decline in 55 days. The fall from a high of $59.5k (May 10) to $30k (May 19) was 49.5%. Thus, one may assume that the recovery process will take approximately 45-50 days. Market participants will calm down if the price retraces to $44.75k (50% of the decline from $64.8k to $30k). For a start, it would be great if the cryptocurrency could manage to hold above the $42.5-43.5k range. This would relieve pressure on altcoins.
Bottom line: A string of negativity from Elon Musk and China knocked bitcoin down to $30k. On the rebound, the price action snapped back to $42,451 (+41.6%), but then declined to $31,111 on news out of Hong Kong. The $30-31.1k range kept the bears in check. The price bounced back 21% to $37,922. Market participants will regain their composure if the price retraces to $44,750 (50% of the drop from $64,854 to $30,000). For starters, it would be nice if BTC could gain a foothold above the $42.5-43.5k range.