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Bitcoin Still Locked Between $32k and $36k, but it Might Break Out if New Rumors are True

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Bitcoin’s price has been trapped between a support at $32,000 and $36,000 for about a month now, and before that, its fluctuations were somewhat larger — from $32k to $38k. In other words, Bitcoin has been going up and down for two solid months now, with its fluctuations gradually diminishing, and its price stabilizing around mid-$30,000s.

This development comes after a price surge that has lasted for over a year — starting in mid-March 2020 and ending in mid-May 2021. In March 2020, Bitcoin crashed due to its correlation with the stock market. The stock market, in turn, crashed due to COVID-19 fears. Evidence that BTC wasn’t supposed to crash (and take the rest of the crypto industry with it) is the fact that crypto prices started growing anew immediately after hitting bottom, including Bitcoin.

Over the next nine months, BTC did not only manage to recover everything it lost in March, but it kept surging, eventually hitting its previous ATH of $20,000, and then going even further up, hitting $30,000 before the year ended.

Bitcoin Analysis 1

All of this, while impressive and exciting at the time, was only an introduction for things that followed.

Bitcoin in 2021

As soon as the years started, Bitcoin took off, leading the rest of the industry up. This new rally pushed it up to $40k, before a correction took place. Still, this correction took it only to $32,000, which has been its bottom ever since. BTC breached this level only a few times since then, but it quickly corrected back up.

As soon as this initial correction ended, the coin started growing once more. As the months passed, BTC kept climbing further and further up, eventually hitting $64,000, and even going to $64,800. On April 14th, 2021, the coin finally hit its new and last ATH until now — $64,863.10, just short of $65k.

Bitcoin Analysis 2

Unfortunately, this is where the corrections started, caused by a number of things that will be discussed soon. When the first correction hit, it brought it down to $48k, which was a strong support that managed to stop the fall. BTC even recovered a bit, going back to $58k, but it never again managed to reach $60k, or go beyond it. Instead, after trying to breach $58k for a few weeks, it crashed again in mid-May, this time sinking to $32,000.

This is where the levels mentioned at the beginning started becoming relevant, as the coin started going up and down between a support at $32k and a resistance at $37k. After about a month of fluctuating between these two barriers, the fluctuations started becoming slightly smaller, and the coin is now going between $33k and $36k.

Bitcoin Analysis 3

What caused the corrections?

To understand what caused the corrections, we should first talk about what caused the surge. Earlier this year, as coins were rallying, Bitcoin seemingly lost its strength at one point. Coincidentally, that was exactly when Elon Musk’s Tesla announced buying $1.5 billion in BTC, and decided to accept BTC payments.

This brought a massive amount of cash flow into the coin. New investors kept buying, institutions kept investing, and the adoption was progressing faster than ever. Several months later, Musk announced that Tesla will no longer accept BTC payments, due to concerns about Bitcoin’s environmental impact. This was a major blow for BTC, and soon after that, China made its move against crypto miners. Not to mention that it published a new law, further banning the use of crypto in its country, eliminating even those firms that managed to survive after the initial ban.

This series of bad news pushed the coin down to its current levels, where it seems to be stabilizing. But, as anyone who has been in the industry for long enough can tell — Bitcoin never sits still for long. And, a recent rumor might be the spark that will allow it to blow up again soon.

Bitcoin might be in for a new surge

A recent rumor on Crypto Twitter claims that Apple may have bought anywhere between $2 billion and $2.5 billion worth of Bitcoin. Furthermore, the rumor says that the company is just about to make the announcement regarding the purchase.

If true, this could have the same effect on BTC and the broader crypto industry as Tesla’s investment from earlier this year. However, the company has kept silent so far, so it all remains pure speculation.

Many are doubting this rumor, however, as Apple has been skeptical of Bitcoin in the past, and some have even pointed out that BTC is too controversial for the company — that it would never touch it. Without any official statement, there is no way to know which side is right, and until Apple confirms or denies the purchase, investors can only speculate. Of course, the speculation alone may be enough to give the price a second wind, although, if it does suddenly shoot up, and Apple denies the rumors, a correction will start immediately, so anyone planning to use these circumstances to invest should keep a close eye on the firm’s next move.

Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.

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