Bitcoin is performing well: "It's a bear-market rally"

Bitcoin leaves marginal drops at the beginning of the month, after closing July with a 17% advance and approaching the $25,000 resistance in the last few days. After recent highs above $24,500, experts praised the digital asset par excellence´s good performance, despite the pullback towards the $23,000 mark. Ethereum's performance is similar, with the token of the eponymous network around $1,700. The total capitalization of all cryptoassets is around $1.1 trillion.

"Bitcoin is another example of an instrument that is performing well and yet I'm struggling to get on board with its justification," commented Craig Erlam, an analyst at Oanda. "It has all the feeling of a bear-market rally, as we may be seeing in equity markets, but that doesn't mean it won't have further to run," he added.

The expert recalled that the digital currency "showed a lot of resilience below $20,000 at times as conditions were far from ideal, which may provide some confidence that the worst is behind it but I'm not convinced it is." "There may be a few shocks to come in the broader markets this year and cryptos will not be immune to them," he warned.

The support and resistance levels are exactly $20,000 and $25,000.

"Although there is still some way to go to recover the losses of the first half of the year, cryptoassets, such as Bitcoin, are experiencing a small recovery," noted Simon Peters, analyst at eToro. "In terms of activity, we see continued synchronization with equity markets. In July, stocks, especially tech and other riskier stocks, rallied again. Much of the effects of inflation and rate hikes seem to have been discounted, and markets are optimistic about recession fears," he added.