Bitcoin recovers, meets resistance at $30,000

Bitcoin rebounded after tumbling along with stocks on Thursday, meeting resistance at the $30,000 level around which it’s been trading for the past month.

The largest cryptocurrency was up 0.6 per cent at $29,938 at 10.20am in London, while Ether rose 1.6 per cent. Bitcoin’s advance largely tracked that of European equities.

Bitcoin has only briefly deviated from the $30,000 level since the collapse of the TerraUSD stablecoin triggered a broad crypto sell-off in early May. The token could “form a cyclical low in the second half of this year, based on previous market cycles, Bloomberg Intelligence analyst Jamie Douglas Coutts said Wednesday.

“The technical outlook is neutral at best and Bitcoin really needs to trade back above $40k before any kind of bullish outlook can be confirmed, Nicholas Cawley, a strategist at DailyFX, wrote in a note Wednesday.

Bitcoin had staged a mini-rally to start the week, rising to a three-week high of $32,359 on Tuesday and giving some in the markets hope that it might gain upward momentum. Cryptocurrencies have been hit as the Federal Reserve and other central banks hike rates to combat stubbornly high inflation.

Solana underperformed amid a network outage that was later resolved, dropping as much as 6.6 per cent after falling 11 per cent on Wednesday. - Bloomberg