Bitcoin dropped to a new 18-month low on Sunday when it reached $17.5k. After this heavy fall, the coin quickly recovered as it went up above $20k in the following hours, relieving traders to some extent after the bearish market rocked the crypto space. Cryptocurrency analysis platform, CoinMarketCap revealed that Bitcoin rebounded by over 15% in the last 24 hours as it is now at $20,618 at the time of writing this report.
Bitcoin, currently pushing at the 2017 all-time high range of $17 to $20k, is constantly stalking lower prices. This means that selling pressure is on the high side. On Saturday, Bitcoin was down to $17,677.42, but it recovered to $18,290.74. However, after Elon Musk, the CEO of Tesla, tweeted that he was now purchasing Dogecoin, Bitcoin, the king coin extended its recovery.
The tweet of Tesla’s CEO about supporting Dogecoin also resuscitated the coin as Dogecoin increased by 8% to $0.0058 on Monday. In response to Elon’s tweet, a user replied that if he truly believes in Dogecoin, he should buy it. The Tesla CEO then said he had already bought the dip.
According to analysts, the fall of Bitcoin below $20k might spark a wave of forced selloffs as whales. Other big investors might be compelled to close their positions on the two most popular coins, Bitcoin and Ethereum. Bitcoin and Ethereum constitute more than half of the crypto market capitalization. The total cryptocurrency market is now capped at $972 billion, witnessing a 3.7% growth in the last few hours.
Bitcoin and Ethereum have experienced a massive decline in recent weeks. In the just concluded week, Bitcoin was down by 30%. It was also down by 72% from its all-time high of $69,044.77 on November 10. Ethereum, on the other hand, was down 31% last week after a 78% decline from its all-time high of $4,878.26.
With the recent climb of Bitcoin above $20k, the coin might have, according to analysts, temporarily paused a selloff which could have plunged the coin to as low as $13,800.
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