Bitcoin (BTC) price exceeded $ 40,000 on May 26thcrossed the main sales floor for the first time in five days.
Traders expect a wider rally and bull market structure if Bitcoin price continues to climb above $ 42,000 and Ether (ETH) recovers the $ 3,000 mark.
$ 42,000 and $ 49,000 are major resistance levels
The price of Bitcoin has risen over the past week due to three main factors.
First the CEO of Tesla, Elon Musk and Michael Saylor, CEO of MicroStrategy, have encouraged bitcoin miners to use cleaner energy..
Musk and Saylor went on and spoke to bitcoin miners in the US about reliable energy consumption.
I spoke to bitcoin miners from North America. They promised to publish the current and planned use of renewable energies and to encourage the WW miners to do so. This is potentially promising.
to???? Elon musk (@elonmusk) May 24, 2021
On second place, The bitcoin futures market has largely been reset. According to data from Bybt.com, the futures market’s open interest fell from $ 27 billion to $ 11 billion when BTC fell below $ 30,000.
This means that The futures market is not saturated, which increases the likelihood of a more sustained and gradual rally.
In third place Ethereum has risen rapidly in the past few days, which also benefits Bitcoin and Altcoins as ETH posted a deeper correction than BTC.
The overall rebound in major cryptocurrencies is improving sentiment around BitcoinThis leads to a gradual recovery in the cryptocurrency market.
Traders say $ 42,000 is the major short-term resistance zone and then $ 49,000 is the macro sell zone.
A pseudonymous trader named “Pentoshi” wrote:
“Lots of altcoins are entering some resistance zones, plus or minus 5%. However, BTC has stalled. It started its LH trend a month ago. I’d love to see bitcoin break above $ 42,000 or altcoins probably make your own LH and make Drop it again. The clock is ticking. “
What is important to note?
In the foreseeable future, The two most important things Bitcoin traders should look out for are IPOs and the $ 42,000 level..
In the best case, If the $ 42,000 level persists and Bitcoin exchanges’ outflows rise at the same time, it would mean investor confidence in BTC and whales would rise above $ 42,000.or.
There is concern that a “dead hop” will occur, which represents a short-lived recovery, however If BTC held the $ 42,000 mark, the likelihood of a false rally would be greatly reduced.