A late surge carried the Bitcoin price past $31,000, where it started the week

Bitcoin price dropped toward $29,200 before a sharp turnaround that saw the price get close to $30,000 later. The cryptocurrency has traded in a choppy price range, and so far, the upside has been capped as some buyers remain on the sidelines. At the time of writing, BTC is changing hands at $30,604.

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BTC/USD 4-hour chart | Source: TradingView

Bitcoin price lost to $30,000 as investors searched for a bottom

Bitcoin surged back above the $31,000 threshold following the introduction of a federal cryptocurrency bill that would address several major regulatory questions dogging the industry. Ether and other major digital assets also rose in the afternoon, regaining ground lost earlier in the week. The largest cryptocurrency by market capitalization was trading above $31,200, about flat over the previous 24 hours but well up from its temporary perch below $29,300. Bitcoin had plummeted late Monday and has continued to trade in a choppy range amid widespread investor anxiety about inflation, geopolitical turmoil, and the global economy.

“Bitcoin sentiment is still relatively negative among the population of holders. This can sometimes be a recipe for unexpected swings to the upside, especially with the current recipe of high leverage ratio + over average negative funding rate”, Santiment reported.

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Bitcoin remains in a choppy trading range as short-term indicators are neutral. The cryptocurrency could find support at $25,000 and $27,000 as its price continues to stabilize from last month’s sell-off.

The daily chart’s Relative Strength Index (RSI) returned below the 50 neutral mark, indicating weak momentum behind the latest price bounces above $30,000. On the weekly chart, the RSI is the most oversold since March 2020, which preceded a rise in crypto prices. Still, indicators can remain oversold for several weeks, especially within a price downtrend. That means the upside could be limited for BTC, with immediate resistance at the 50-day moving average of $33,371.

Meanwhile, altcoins were mixed. Ether, the second-largest crypto, was recently down over 1%, trading just above the $1,800 level. Chainlink (LINK) rallied by 11% over the past 24 hours, compared with BTC’s flat performance over the same period. Internet Computer’s ICP token was down by 6%, and Solana (SOL) declined 4%. Sentiment among crypto traders remains bearish, although some analysts and fund managers are starting to search for a price trough in the hopes of recovering from big losses realized over the past month.

The overall cryptocurrency market cap stands at $1.261 trillion, and Bitcoin’s dominance rate is 46.8%.

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