Bitcoin, the digital currency that’s been around since 2009, has all the factors necessary to become a mainstream asset class: it’s a digital currency, it’s decentralized, it’s not controlled by any government, it’s uncensorable, and it’s global. The problem is that besides these main facts, there is very little real world evidence to support Bitcoin’s value proposition. So it’s no surprise that Bitcoin has been stuck in a choppy range that’s had a difficult time hitting new highs, even as the rest of the market has enjoyed a massive bull run.
The cryptocurrency market has been a big topic for investors in 2017, as Bitcoin’s value soared to a high of $2,500 in November, though this figure has since been eroded to around $1,800. It’s a financial rollercoaster, and there are plenty of risks that can be taken.
Now that Bitcoin has broken through $40K, it is time for the altcoins to face the music. After all, $40K is a level of support, not a line of support. This is the first time in a long time that Bitcoin has successfully held above this level. It is up to the altcoins to show why they might be able to hold on to the $40K level as Bitcoin keeps moving higher.. Read more about bitcoin price prediction and let us know what you think.
Bullish optimism is the dominant emotion of the day as Bitcoin’s (BTC) price returned to the psychologically significant $40,000 mark.
Aside from the turnaround from this week’s local low of $37,500, Gary Gensler, the chairman of the US Securities and Exchange Commission, made favorable remarks about the crypto sector and reiterated the aim of eliminating fraud in the ecosystem.
4-hour chart of BTC/USDT. TradingView is the source of this information.
Here’s what experts and traders are saying about Bitcoin now that it seems to be on the verge of reaching $40,000.
Traders are watching for the price of $40K to shift from resistance to support.
Many traders consider $40,000 to be a critical milestone for Bitcoin, and how it performs from here may decide whether the market begins another bullish phase or just refuses to revisit underlying support levels.
The $40,000 price objective is near to the 200-EMA, as noted by the pseudonymous crypto Twitter analyst Rekt Capital, and it is critical that Bitcoin achieves a few closes above this moving average.
If the current #BTC gain is only a relief rally to revert the 200-day EMA to resistance,
Then $BTC may retrace to the blue 50-day EMA.
#Crypto #Bitcoin pic.twitter.com/AWwP5jomvv#Crypto #Bitcoin pic.twitter.com/AWwP5jomvv#Crypto #Bitcoin pic.twitter.com/AWwP5jomvv#Crypto #Bitcoin pic.twitter.com/AWwP5jomv
August 4, 2021 — Rekt Capital (@rektcapital)
If Bitcoin fails to maintain this level, the next support zone may be the 50-day EMA around $26,723. If BTC fails to stay above this level, it is more likely that it will go back to its July lows.
According to Rekt Captial:
“If BTC fails to recover the 200-day EMA shortly, it will revert to resistance, rejecting price to the mid-$30,000s.”
Bitcoin is on the verge of becoming a’make or break’ currency.
The significance of a strong BTC close over $40,000 was also emphasized by Twitter analyst Fomocap, who identified the $40,400 price mark as a significant place to monitor in the following tweet.
Bitcoin has to close above $40,400 to cement the uptrend, according to Fomocap, and rejection at this level opens the door to a return to the $30,000 area.
The following levels of support below $37,000, according to the chart, are $34,300 and $32,000.
According to a recent study, panic selling is the most common error made by cryptocurrency investors.
Even if Bitcoin reaches $40,00, traders will remain undecided.
Even if the $40,000 level is recovered, traders will walk carefully due to the indecisiveness that characterized Bitcoin pricing during July.
At $37k, Bitcoin is in a bear market and has failed as a store of value; we’ll see you at $20k.
At $39,500, Bitcoin is the ultimate inflation hedge and the best store of wealth; we’ll see you at $100,000.
August 4, 2021 — Joseph Young (@iamjosephyoung)
As things stand now, a more definitive breakthrough of Bitcoin price through the $40,000 to $43,000 resistance cluster is required before traders acquire confidence to pursue this year’s all-time highs.
The author’s thoughts and opinions are entirely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
As Bitcoin’s price continues to climb, analysts from various analytics firms have been confirming that the cryptocurrency is on track to surpass $40,000 per coin by the end of 2017. They believe that the price of Bitcoin will increase by 1,000% over the next 5 years to reach this level, triggering the formation of a new asset class, which will in turn trigger massive growth in the global economy.. Read more about will bitcoin go below $40,000 and let us know what you think.
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