Bitcoin (BTC) Surges Towards Key Resistance Barrier; Rebound May Be Short-Lived

Bitcoin trades at around $59,000 on Tuesday after a slight recovery the day before. However, this rebound might be short-lived as it nears a crucial resistance barrier.

Bitcoin price showed signs of recovery on Monday after falling below the crucial support level of $57,000 last week. However, the rebound might be short-lived as BTC edges closer to a key resistance barrier.

Bitcoin price attempts to recover from last week’s losses. BTC price showed signs of recovery on Monday after falling below the crucial support level of $57,000 last week. The world’s largest cryptocurrency dropped to lows of around $56,600 on Friday after failing to break through the resistance at $65,000.

Bitcoin price is currently trading at around $59,000, up 1.2% over the past 24 hours and 7% down from the seven-day high. The leading cryptocurrency has been trading within a tight range over the past few weeks as it faces resistance at higher levels and support at lower levels.

Bitcoin price showed some resilience last week after bouncing off the 50-day moving average (50 DMA). However, the 100 DMA also acted as a resistance level, preventing BTC from making further gains.

Now, as Bitcoin price recovers from last week’s losses, it faces immediate resistance at the 23.6% Fibonacci retracement level of the recent decline from the highs of $64,876 to the lows of $56,586.

This resistance is followed by the 38.2% Fibonacci retracement level and the 50 DMA, both of which could limit BTC’s upward momentum. On the downside, support is seen at the 50% Fibonacci retracement level and the lows of last week.

institucional interest in bitcoin grows further institutional interest in bitcoin grows further VanEck’s optimistic bitcoin price forecast drove institutional interest in the flagship digital asset on Monday.

According to the latest data from the United States Commodity Futures Trading Commission (CFTC), institutional interest in Bitcoin remained strong last week despite the recent price decline.

The net speculative long positions in Bitcoin futures and options rose by 10,346 contracts to reach 214,868 contracts, the highest level since May 2022. This increase in long positions suggests that institutional investors are still optimistic about Bitcoin’s price performance in the coming weeks.

Moreover, a strategic partnership between Metaplanet and SBI VC Trade is set to enhance Web3 and DeFi adoption in Southeast Asia. The partnership will see Metaplanet integrate SBI VC Trade’s Web3 wallet service into its DeFi aggregation platform.

Additionally, increased wallet holdings are likely to influence bitcoin price movements. According to data from Santiment, large Bitcoin wallets, holding between 100 and 100,000 BTC, saw a net accumulation of 25,000 BTC over the past seven months.

This accumulation by large wallets, as smaller wallets continue to sell their holdings, might be contributing to the resilience in Bitcoin’s price. However, as the large wallets begin to sell their holdings, it could put pressure on BTC’s price.

PancakeSwap burns $15 million in CAKE tokens, eyeing double-digit gains decentralized exchange PancakeSwap burned its native token CAKE worth $15 million on Monday. Burning the token removes it permanently from the circulating supply, reducing the selling pressure on the asset and likely positively influencing its price.

The DeFi project burned its native token CAKE worth $15 million on Monday. Burning the token removes it permanently from the circulating supply, reducing the selling pressure on the asset and likely positively influencing its price.

The decentralized exchange (DEX) was launched in September 2020 and celebrates its fourth anniversary this month. PancakeSwap is also preparing for a “special announcement” on September 22.

The burning of the CAKE tokens is part of PancakeSwap’s tokenomics. A total of 474,393 CAKE tokens were burned in the latest batch, reducing the circulating supply to 100,388,060 CAKE.

The burning mechanism is designed to help maintain the value of the CAKE token and support its price performance in the coming months.

As the DEX marks its fourth anniversary, users can expect new updates, collaborations and events on the platform. PancakeSwap has seen impressive growth over the past year, and its native token CAKE has shown resilience amid the bear market.

The DEX is currently ranked third by total value locked (TVL) among DEXs, with $5.3 billion in assets deposited on the platform. PancakeSwap also boasts the highest 24-hour trading volume among DEXs at $1.03 billion.

With a strong community and a focus on user experience, PancakeSwap is well-positioned to continue driving the adoption of Web3 and decentralized finance (DeFi) in the coming year.

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