Jul 25, 2022 03:00AM ET
By: AnalysisWatch
The prices of the cryptocurrency have already touched the so-called upper Bollinger Band, which could indicate sustained upward movement.
Some analysts acknowledge that BTC and the other cryptocurrencies are still stuck in a bear market whose end is uncertain.
Bitcoin has managed to recover after the fall caused by the sell-off of Tesla’s positions in the cryptocurrency.
The unusual rebound of Bitcoin (BTC) over 30% from its June lows makes analysts think that the bear market that has hit the cryptocurrency in recent months could be ending soon.
The signs of a further approach towards $25,000 are due to the fact that BTC prices have hit the so-called upper Bollinger Band, says Bloomberg. This occurs after a period in which volatility was compressed, which is often interpreted as “a precursor to a sustained directional move,” the publication states.
Something similar happened in June when a period of low volatility was observed, which then caused Bitcoin to slide, just after marking the lower band. On Friday, July 22, BTC rebounded again after a decline the previous day.
Resisting Tesla’s Sell-Off
The cryptocurrency’s drop on Thursday came after Tesla announced a Bitcoin sell-off. Elon Musk’s car company sold 75% of its cryptocurrency holdings.
Despite the losses, Bitcoin was able to resist and recover by passing the $23,000 barrier. However, it has yet to reach the high of $24,200 it made for the week.
Musk’s Clarification on the Sale of BTC
Regarding Tesla’s move to sell 75% of its Bitcoin, Elon Musk clarified during a company earnings results conference call that this sale should not be considered a Bitcoin verdict.
He explained that the real reason was uncertainty over how long the COVID-19 lockdowns in China will last, raising concerns for the company’s production. “It was important to us to maximize our cash position
At 10:35 a.m., Bitcoin was trading at $23,504, according to Coindesk, posting a 5.04% gain during the day.
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