The cryptocurrency market is in the middle of a recovery phase following Monday’s downslide. Previously, Bitcoin faced multiple waves of corrections after a brief pullback toward the $30K low, the lead crypto recovers and aims to print a new high. The bulls’ efforts pay up in a return rally as BTC/USD grinds past $40,000. BTC opened today’s trading session at $37,393 and rose past $40,000. As the weekend draws nigh, BTC could spike beyond $41,500 again and perhaps set a new record high. The market cap currently stands at $726.24 billion, ranking BTC 1st on the Coinmarketcap table, with $66.36 billion in trading volume over the past 24 hours. The price of Bitcoin (BTC) has extended its recovery at the time of this post to $40,127 high and it’s likely to continue to move higher. Grayscale Bitcoin Trust (GBTC) holdings increased to 608,810 following Grayscale purchase of 2,170 BTC which is $80M worth of Bitcoin. That seems to have somewhat affected Bitcoin’s price as several institutional investors keep stating they’ll enter the Bitcoin space through Grayscale.
*Previously, Bitcoin faced multiple waves of corrections after a brief pullback toward the $30K low
*The bulls efforts pay up in a return rally as BTC/USD grinds past $40,000
*Grayscale Bitcoin Trust (GBTC) holdings increased to 608,810 following Grayscale purchase of 2,170 BTC which is $80M worth of Bitcoin
Key Levels
Resistance Levels: $42,000, $41,500, $40,000
Support Levels: $38,000, $37,000, $35,000
BTC/USD Daily Chart: Bullish
BTC/USD Daily Chart
Bitcoin has moved fast past the $40,000 after testing $30,000 earlier this week. A daily close past $38,000 may see BTC explode past the $40,500 mark and perhaps reach new record highs. In the meantime, it is unlikely that bears could prevail in the market, and BTC/USD could decline below $30,000 due to the support formed by the weekly low.
On the flip side, the Bitcoin bullish narrative will be thrown out the window if a correction occurs under $38,000. The MA 50 might absorb some of the selling pressure, but some of the most formidable support levels sit at $38,000, $35,000, and $32,000. The level at $30,000 is home to BTC’s primary support.
BTC/USD 4-Hour Chart: Bullish
BTC/USD 4-Hour Chart
Bitcoin has broken above the technically important $38,000 mark, meaning that the BTC/USD pair has broken from the $30,000 past the $38,000 trading range. Technical analysis shows that the key former swing-high, close to $42,000, is the next major upside level bulls need to break. A move past the $40,500 level could cause Bitcoin to test towards its all-time price high, around the $42,000 level.
The prospect of further upside towards the $42,000 level remains possible as long bulls continue to defend the psychological $39,000 long. The BTC/USD pair is only bullish while trading above the $38,000 level, key resistance is found at the $40,000 and the $42,000 levels. If the BTCUSD pair trades below the $38,000 level, sellers may test the $37,000 and $35,000 levels.
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