Bitcoin saw a strong rebound today, with the bulls fending off a deeper sell-off as the cryptocurrency approached the region below $ 30,000 overnight.
Where the entire market will head in the short term will undoubtedly depend on BTC and its continued response to its important short term support.
So far, buying pressures of between $ 30,000 and $ 33,000 have been promising and may suggest that another spike is imminent.
An on-chain analyst also notes that this happens to be the price region where tons of institutional buyers entered earlier this month.
As such, these groups could eagerly defend against a fall below this level.
Bitcoin Storm and the entire crypto market have been exposed to intense selling pressure in the last few days.
This caused Ethereum to decline as much as 40% from its highs at one point, while Bitcoin saw a similar decline as it broke below $ 40,000 and tumbled towards $ 30,000.
BTC has not yet broken below this important level of support, and one analyst believes it may be institutions that are protecting it from further downward pressure.
Bitcoin gains momentum, bulls initiate trend reversal
There was a strong influx of buying pressure on Bitcoin overnight which helped ease recent selling pressures .
This allowed the price of the cryptocurrency to soar towards $ 35,000 – a level it has now surpassed in the short term. BTC is currently trading at $ 38,300.
If the bulls can convert the mentioned level into support, it could create a base that will allow BTC to expand again towards $ 40,000 in the near future.
Are institutions guarding the $ 30,000 area?
A popular on-chain analyst recently pondered the possibility that institutions could protect Bitcoin from falling below $ 30,000.
In a tweet he writes that $ 30,000 to $ 32,000 is the area where many institutions started buying Bitcoin . As such, they are probably interested in not breaking below this level.
“There are many institutional investors who have bought $ BTC at the 30-32k level. Coinbase’s January 2 outflow was a three-year high. Speculative guess but if these people are behind this bull run they will protect the 30k level. Even if we had a dip, it wouldn’t go below 28k. „