The price of Bitcoin (Bitcoin) The price on Wednesda has surpassed $40,000, breaking through the key sales area for the first time in five days.
Traders expect that if Bitcoin continues to rise above $42,000, Ether (ETH) Claim back $3,000.
$42,000 and $49,000 are key resistance levels
Due to three main factors, Bitcoin has been recovering in the past week.
First, Tesla CEO Elon Musk and MicroStrategy CEO Michael Saylor have been encouraging Bitcoin miners to use cleaner energy.
Since then, Musk and Saylor communicated with Bitcoin miners in the United States on reliable energy consumption.
Talk to North American Bitcoin miners. They promised to release current and planned renewable energy usage, and asked miners WW to release it. Potential hope.
-Elon Musk (@elonmusk) May 24, 2021
Second, the Bitcoin futures market has largely reset. According to data from Bybt.com, when BTC fell below US$30,000, the open position in the futures market fell from US$27 billion to US$11 billion.
This means that the futures market will not be overcrowded, thereby increasing the possibility of sustainability and a gradual rebound.
Third, Ether has been rising rapidly in the past few days, which also benefits Bitcoin and altcoins, because Ethereum has a deeper correction than Bitcoin’s price.
Overall, the major cryptocurrency rally is improving sentiment surrounding Bitcoin, leading to a gradual recovery in the crypto market.
According to traders, in the short term, US$42,000 is an important short-term resistance level, after which US$49,000 is a macro selling area.
Trader under a pseudonym, called Pentoshi write:
“Many alternatives have resistance between +/- 5%. As discussed in the nuclear weapons discussion, we have achieved mean reversion. But $BTC is stuck. It started the LH trend a month ago. Hope Seeing Bitcoin popularity + 42k or alternatives may generate its own LH and drop again. The clock is ticking.”
What is important to pay attention to?
In the foreseeable future, for Bitcoin traders, the two keys to watch are transaction outflows and the $42,000 level.
Ideally, if the level of $42,000 is maintained and the outflow of Bitcoin exchanges increases at the same time, it means that investors’ confidence in BTC and whales exceeds $42,000.
Have concern A “dead cat rebound” may be formed, which is a short-term recovery, but if BTC holds $42,000, the chance of a counterfeit rebound will be greatly reduced.