Bitcoin returns to the 20,000 USD mark, Stabilizing the crypto market

Over the weekend, there was a slight market recovery: on Sunday, Bitcoin (BTC) was trading at a level above 21,000 USD. The cryptocurrency managed to regain its lost positions after a volatile environment, when BTC dropped below 20,000 USD, dragging many altcoins with it. Now Ethereum (ETH) and other cryptocurrencies are growing again after Bitcoin amid market stabilization and optimistic news from around the world.

The stabilization of the cryptocurrency market once again confirmed the correlation between cryptocurrencies led by BTC and shares of technology companies, as the S&P 500 and NASDAQ showed modest growth. Apparently, investors are ready for new risks.

Altcoins also headed for recovery by the end of the week on a generally positive note.

So, for example: Avalanche (AVAX) grew by more than 4%, ahead of Bitcoin and Ethereum, and the MATIC token jumped by 19% on Thursday, when Polygon released improved privacy features for the DAO on its network. As for the Cosmos (ATOM) altcoin, it grew by 12%.

As trading resumes on weekdays, the level of 20,000 USD remains the most important point for BTC. The historical falls of the world’s first cryptocurrency at this level include the infamous collapse of 2017, when Bitcoin approached this mark, and then collapsed by 84%.

A similar move now could mean a decline to 10,000 USD or lower, as a result of which traders will start dumping cryptocurrencies throughout the market. On the other hand, it can become an entry point for beginners who want to take advantage of a low price.