For almost a month now, BTC continues to trade above $40,000 amidst different market conditions. The current mark BTC is trading above is one of its new records and comes amid increased mainstream exposure for the asset.
Bitcoin rose to the $40k status on February 8, 2021. The move was buoyed by the announcement of Elon Musk’s Tesla investing $1.5 billion into bitcoin. Bitcoin rose in minutes, a single 1-hour candle displayed more than $4,000 increment.
That was the second time BTC breached the $40k mark. An earlier stint in early January lasted for less than 48 hours. But since the last climb above $40k, Bitcoin has convincingly stayed above that mark and even had the luxury of hitting an all-time high of $58,640.
Bitcoin owes its strong stay above $40k to various institutions that have continued building their positions. Aside from the Tesla buy, bitcoin tested $50,000 On February 11, thanks to news that one of the oldest US banks, BNY Mellon it will launch a cryptocurrency-focused department later this year.
Bitcoin then defied odds to reach a new all-time high during the weekend of February 21. The weekend offers a completely different vibe compared to the weekdays. Based on price actions, the weekends have more volatility and less trading volume on a normal week.
Since then, various factors have also tried testing the $40k support. The following week after bitcoin ATH, prices started depreciating. Gradually, prices tested the $50,000 support, broke it and dipped to as low as $43,000.
BTC continues to suffer more dips that increase in the past few days. The leading cryptocurrency stayed between the $52k and $43k range, with the $51,000 mark remaining the strongest resistance on the path to Bitcoin revisiting its all-time high.
If traders are unable to steady Bitcoin price above $42k in the coming days, then the threat to $40k is imminent. Until then though, Bitcoin continues to prolong its stay and entertain investors with its newfound stability.
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Author: Gideon Geoffrey