The price of bitcoin has risen to the level of $34,300. Ethereum strengthened to the level of $2,150, and XRP reached 60 cents. The total capitalization of the digital currency market was $1.39 trillion.
The main cryptocurrency on Sunday briefly reached a 12-day high of $34,800. The growth relative to the lows of the beginning of the week was almost 20%. According to analysts at Santiment, the current movements are taking place against the background of the minimum trading volumes since October 2020. The volume shows the investors ' confidence in the trend. A small volume means that a limited number of investors puts a limited amount of capital at risk. Such investors are able to move the price up or down, but if others do not follow them, a quick return to previous levels is possible. Santiment emphasizes that low trading volumes do not guarantee a decline in bitcoin, but only mean that the actions of individual traders will have a greater impact on the price. In addition, bitcoin balances on exchanges are approaching the lows of 18 months ago. The continued withdrawal of coins from the exchanges against the background of a depressed exchange rate is a promising sign that the markets are reducing the risks of a mass sell-off.
For the first time in many weeks, analysts are noting positive signs and expect bitcoin to head to the upper limit of the $30000-40000 range. A significant amount of open interest remains in monthly July options with a strike of $35,000. This level may become the ceiling for bitcoin for the current month. Participants of the options market estimate the probability of bitcoin rising to a new maximum above 64800 by the end of the year at only 8%, and they give only 2% for growth to six-digit marks. The expected volatility for the six months ahead is now at the lowest level in more than two months, about 80%, after it jumped to 122% on May 17. In other words, traders anticipate further market consolidation. Meanwhile, Bloomberg claims that bitcoin will return to 60,000 rather than fall to 20,000. Analysts build their forecast based on similar recovery periods in the past.
The forecast assumes a decline in the price of Bitcoin to the levels of 34000, 33700 and 33500 dollars. The cost of Ethereum will reach the marks of 2120, 2100 and 2080 dollars, and XRP will fall to the price values of 58, 56 and 55 cents.