Bitcoin price got a slight bounce this week as investors hoped that the worst cryptocurrency liquidity crisis would be over.
By Friday, bitcoin was up 13.63% for the seven-day trading week starting Sunday, and was on track for its best week since October, according to Cowen’s metrics. The price rose to $22478.37 at one point, up from a low of $17,000 in June.
It last traded less than 1% higher on the day at $21,693.80, according to CoinMetrics.
However, doing so will only push the price of Bitcoin back to April levels. It is currently nearly 70% below its November high of $68,982.20.
Gritt Trakulhoon, chief cryptocurrency analyst at Titan, described Bitcoin’s weekly rally as a “much-needed” short-term relief move that comes after a major capitulation going back to May, when the Terra stablecoin project collapsed. In fact, with cryptocurrency prices dropping and liquidity strained, cryptocurrency lenders and other businesses have also suffered.
Trakulhoon said $22,500-$23,000 is the resistance level to watch for bitcoin. If he exceeds that limit, he added, he should rise “very quickly” to his next stop: $28,000.
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