[Bitcoin Now] Approaches $20,000 with 5% Rise... "Temporary Rebound"

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The price of Bitcoin, a leading cryptocurrency that had been plummeting for days, approached the $20,000 mark as bargain buying surged. However, experts predicted that this would be only a temporary rebound.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:40 a.m. on the 20th, Bitcoin's price rose 5.35% from the previous day to $19,810 (approximately 25.63 million KRW). Bitcoin rebounded within a day after falling to the $17,000 range for the first time since December 2020 the previous day.

The Bitcoin price appears to have temporarily rebounded due to bargain buying in the downtrend. Bloomberg reported that the price increase on this day was a technical rebound. Casey Stockton, founder of the U.S. investment advisory firm Fairlead, advised, "The rise in Bitcoin prices is due to a short-term technical rebound," adding, "Momentum is very negative, so you should not buy."

There are also forecasts that this rebound will not last long. Joe DiPascal, CEO of BitBull Capital, said, "I suggested expected Bitcoin prices of $19,000?$20,000 and $16,000?$17,000, and Bitcoin rebounded from the latter," but added, "Unless the $20,000 level is supported by high trading volume and price, the rebound rally will not continue." He further noted, "Until the Federal Reserve's stance changes at the July Federal Open Market Committee (FOMC) meeting, Bitcoin prices are likely to remain weak."

Meanwhile, major altcoin Ethereum is also rising by more than 10%. Ethereum is trading at $1,081 (approximately 1.39 million KRW), up 10.36% from the previous day. Another altcoin, Dogecoin, is trading at $0.058 (approximately 75.69 KRW), up 11.89% from the previous day, influenced by a social media post from Elon Musk, Tesla CEO. He wrote on his Twitter the previous day, "I will continue to support Dogecoin."

Meanwhile, the digital asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 18.37 on this day, indicating a "Extreme Fear" stage. This is 12.40 points higher than a week ago's 5.96 (Extreme Fear). 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 indicates increased interest in buying by market participants, whereas moving toward fear indicates a chain reaction of price declines as investors exit the market due to fear of asset depreciation.