[Bitcoin Now] Sharp 6% Surge on Low-Price Buying Influx... Recovery to $30,000 Range

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Due to factors such as bargain buying, the price of the representative cryptocurrency Bitcoin showed an upward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:57 AM on the 20th, the price of Bitcoin was $30,567, up 6.12% from the previous day (approximately 38.4 million KRW).

The Bitcoin price appears to have risen due to bargain buying. Cryptocurrency specialized media CoinDesk reported that bearish sentiment among cryptocurrency investors is weakening. It also mentioned that since the Relative Strength Index (RSI) has passed the oversold zone, there is a possibility of short-term buying inflows for the time being. The media views Bitcoin's first resistance level at $35,000. Furthermore, it analyzed that due to the recent Luna incident, investment proportions in Bitcoin, which has relatively less volatility compared to other cryptocurrencies, may increase.

Earlier, when the price of TerraUSD (UST), a stablecoin designed to be pegged to 1 dollar, plummeted, the price of its sister coin Luna also dropped, causing a major crash. Unlike other stablecoins backed by safe assets such as cash or government bonds, Terra applied an algorithm that maintains its value through Luna. However, due to concerns about economic recession, the prices of UST and Luna fell, eventually spreading to a crash in the prices of most cryptocurrencies including Bitcoin.

Meanwhile, the Digital Asset Fear and Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 31.86 on the day, indicating a 'Fear' stage. Compared to 29.65 (Fear) the previous day, it rose by 2.21 points. Dunamu's Digital Asset Fear and 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 indicates a fear of asset decline causing market exits and a chain reaction of price drops.