Bitcoin’s rally accelerated rapidly in recent days, after the digital token will exceed USD 40,000 on August 5, a key level that could indicate further upward momentum.
The largest digital currency in the world rises this Monday 4.5% this Monday, to USD 46,000 in New York operations, the highest level since mid-May. Rival coins Ether and Litecóin were also up, while stocks exposed to cryptocurrencies, such as MicroStrategy, posted similar gains.
“Momentum can really turn things up,” he said. Jerry braakman, the chief investment officer of First American Trust in Santa Ana, California, which manages $ 2 billion, in statements to Bloomberg.
For observers of the charts, Bitcoin’s 200-day moving average could mark the next stop or resistance threshold, given that the coin surpassed its average price of the last 100 days this week.
Furthermore, its 14-day Relative Strength Index (RSI), currently at 68, is approaching overbought levels, indicating that any further rise could carry it into that territory.
However, Braakman says that he remains aware of the wild moves that Bitcoin has registered this year, many of which were spawned by proclamations from backers such as Elon musk. “Volatility is good on the upside, but it’s very painful on the downside,” said the First American Trust expert.
The price of Bitcoin, the most representative cryptocurrency, scores a growth of 36% or USD 36,000 in the last month. With the same trend, the market capitalization of Bitcoin reaches USD 863,000 million, practically the same amount added to all the other cryptocurrencies that coexist in an atomized market.
On April 7 the Bitcoin touched $ 65,000 for the first time in their short history, but since then they have embarked on a strong selling trend that took them to a $ 29,000 floor in June.
Bitcoin presents levels not shown for four months, when the downward cycle began that kept it below $ 40,000 for several weeks. While Ether It broke the $ 3,000 top and there are those who are excited that it will embark on a bullish streak that will take it to its all-time high of $ 4,300.
Although many see a threat from eventual regulation on cryptocurrencies in the US, others believe that it could be useful to offer more protection to investors.
Both cryptocurrencies, the largest in market volume, had their peaks this year and then suffered the debacle that shocked investors. But now she seems emboldened. Even, Bitcoin bulls forecast that by the end of the year the value will reach close to $ 100,000.
It still weighs on the transactions of the “crypto” certain uncertainty generated by the possible regulation of digital currencies that the government of Joe biden in United States. It is an infrastructure bill that the United States government presented to Congress and that, among its amendments, addresses the idea of submitting reports for crypto transactions greater than USD 10,000 and the collection of taxes.