BTC hits $40k just three days after a massive dip
- BTC/USD reached a high of $40,112 today as bulls returned to the market.
- The cryptocurrency managed to score double-digit gains and pull the market to the upside.
- Most institutional investors predict a BTC price of over $100k by the end of 2021.
BTC has shot up in the last 24 hours, recording double-digit gains and hitting the $40k mark just three days after pulling back to $30k.
This uptick was certainly a surprise as many analysts called for a pullback below $30,000, or even said that “this bubble has popped” and called for another 85% retracement, which the largest cryptocurrency by market cap saw after its 2013 and 2017 bull runs.
Fundamental analysis: is Bitcoin unstoppable?
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Bitcoin’s failed attempt of breaking the $42,000 all-time high sparked the bears’ interest in the cryptocurrency as many analysts called for a “bubble bursting” once Bitcoin started dipping. Some even went as far as calling a 85% retracement and a BTC/USD price of 6,000.
There were, of course, many prominent bullish investors which stated that Bitcoin going to $30k was just a market correction that’s about to be “flipped” soon. Tyler WInklevoss, co-founder of the exchange Gemini, posted a tweet regarding the most recent price movement, stating:
“They said #Bitcoin died on Monday, but now it’s above 37k. Don’t listen to the noise, stay focused.”
BTC still didn’t fully recover from its week of losses, as it managed to lose 1.96% week-over-week. When compared to other cryptocurrencies, ETH and XRP managed to lose 4.23% and 17.82% over the same period, respectively.
Bitcoin’s dominance in the crypto sector also increased, and is currently sitting at 69% of the total crypto market cap.
At the time of writing, BTC/USD is trading for $39,430, which represents month-over-month gains of 66.16%.
BTC/USD technical analysis
BTC has been trying to recover after dropping to the lows of $30k, and seemingly found support at the 21-day EMA. The cryptocurrency started to push towards the upside once the bulls were confident enough to start buying larger amounts of BTC, and the price started shooting up, reaching as high as $40,112. The cryptocurrency is now trading slightly below the $40k level.
Bitcoin is now in very dangerous and unstable territory, as it faces a strong psychological resistance level of $40,000 as well as the all-time high level of $42,000. If we look at the downside, BTC has many strong support levels, most notably the 21-day moving average, the zone around $38,000, and the zone around $34,600.
Bitcoin’s RSI on the daily time-frame stayed in the overbought territory for a very long time now, and has dropped below it during the most recent crash. However, the oscillator value is on the rise again, currently sitting at 69.66 and aiming up.
BTC’s hourly time-frame shows the importance of the 1-hour time frame, as well as its exponential moving averages. Bitcoin tried to form a top near the $38k mark at one point, but the dip was quickly stopped by the 21-hour EMA, which sparked another push by the bulls. We can also see that the 21-hour EMA crossed over the 50-hour EMA, which is a bullish indicator.