The cryptocurrency market is recovering from the slump it suffered over the past two days.

After a two-day downtrend, the cryptocurrency market is back in the green area. The market has appreciated by over 1% in value in the last 24 hours, but the overall market cap remains below $1.3 trillion.

Presently, Bitcoin is trading at $30,700 after dipping below $30,000 earlier today. Ethereum is the second-largest cryptocurrency with a market cap of $148 billion.

Bitcoin has lost more than 10% of its value since reaching an all-time high of $34,800 on January 8. The sell-off was triggered by Chinese regulators cracking down on cryptocurrencies.

The poor performance of Solana has had an impact on the overall market, with another outage occurring two days ago.

Bitcoin’s hashrate also fell sharply, which led to a drop in mining difficulty. Bitcoin’s price is down 3% over the last 24 hours, while Ethereum’s price has dropped by 2%.

Bitcoin Cash and Litecoin are also down by around 4% each. Bitcoin SV is the only major cryptocurrency that is up in the last 24 hours, by around 3%.

Despite plummeting once again below $30,000, Bitcoin continues to reign supreme as the world’s most valuable cryptocurrency by market cap.

Bitcoin’s price is currently hovering around $29,700, after reaching a high of $32,000 just a few days ago. Bitcoin’s sudden drop comes as a surprise to many, especially given the overall positive performance of the market in recent weeks.

The $30,000 mark has been broken by bitcoin for the first time since its creation. The cryptocurrency is currently valued at around $29,900 per coin, up by less than 1% over the last 24 hours. 

Bitcoin’s price is currently down by around 2% on the day. However, it is still up by almost 8% since the beginning of the week.

Bitcoin’s market capitalization has dropped to $570 billion, according to CoinMarketCap.

This means that Bitcoin has lost more than half of its price in the past seven months. Since reaching an all-time high of $69k in November 2021. The total cryptocurrency market cap was then above $1.1 trillion.

The market crash in mid-March caused Bitcoin’s price to drop below $4,000. Bitcoin has since recovered and is now down by around 70% from its all-time high.

Ethereum, the second largest cryptocurrency by market cap, is currently down by 1.5% and is trading at $1,858. Ethereum’s market cap is $213 billion.

Critical levels to watch

Despite Bitcoin presently being in the green zone, the BTC/USD 4-hour chart is bearish. Recent days have seen Bitcoin underperforming according to technical indicators. To prevent a decline, bitcoin’s price must stay above $30,000.

The next key levels to watch for Bitcoin are $34,000 and $36,000. Ethereum’s next key level is $2,000.

Data Source: Tradingview

The 14-day RSI is close to the oversold territory at 42. Suggesting that if the bulls don’t push Bitcoin’s price higher, it could fall into the undersold region. The MACD line is close to the neutral line, showing modest bearish momentum.

If the bulls reclaim control of the market, Bitcoin may safely rise past $30,500, which is where major resistance begins. BTC has had difficulty maintaining a position above $32k, and that may continue over the weekend.

If the bears regain control, Bitcoin could have a hard time defending its position. Near the first support level at $28,750 in the next few hours or days.

The Bitcoin market has seen a lot of volatility in the past few days. The world’s largest cryptocurrency by market capitalization dipped below $30,000 after hitting an all-time high of $41,940 on Jan. 8.

The move came as a surprise to many investors who were expecting Bitcoin to continue its upward momentum.

James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.