[Bitcoin Now] 'Low Price Buying Pressure' Drives Recovery to $39,000 Level in One Day

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are rising on the 28th as low-price buying demand floods in. However, experts predict that the upward trend will not last long.

According to the global cryptocurrency market status relay site CoinMarketCap, as of 10:10 AM on the 28th, the price of Bitcoin was $39,592 (approximately 49.83 million KRW), up 3.95% compared to the previous day.

It is estimated that low-price buying demand surged as Bitcoin prices fell nearly 6% the previous day due to the plunge in the US Nasdaq index. The market advises caution due to high price volatility. Cryptocurrency specialized media 'CoinDesk' analyzed, "Overall, the high volatility in cryptocurrencies and stocks reflects uncertainty caused by macroeconomic and geopolitical risks."

There is also analysis that the upward trend in cryptocurrency prices will not last long due to geopolitical risks such as the Ukraine war and negative factors like US tightening. Alex Kuptsikevich, Senior Market Analyst at FxPro, analyzed, "Currently, Bitcoin is like a window ledge caught just before falling out the window." The rise on this day means a technical rebound in a downtrend.

The US Nasdaq index, which is technology stock-centered and shows synchronization with Bitcoin prices, fell slightly. On the 27th (local time), the Nasdaq index closed at 12,488.93, down 1.81 points (0.01%). Meanwhile, the Dow Jones Industrial Average rose 61.75 points (0.19%) to 33,301.93, and the large-cap S&P 500 index closed at 4,183.96, up 8.76 points (0.21%).

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 46.68 on the day, indicating a 'neutral' stage. Compared to 46.43 (neutral) the previous day, it rose by 0.25, but compared to 47.19 (neutral) on the 21st of this month a week ago, it fell by 0.51. Compared to 65.48 (greed) one month ago, it dropped by 18.80. Dunamu's Digital Asset Fear & Greed Index is divided into stages of 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. The greed direction means increased interest in buying by market participants, whereas moving toward fear means a fear of asset decline causing market exits and a chain reaction of price drops.