Bitcoin price (B T c) Has crossed $ 40,000 on May 26, breaking the major sales sector for the first time in five days.
Traders expect a broader rally and a faster market structure will build if bitcoin continues to rise above $ 42,000 and ether (ETH) Retrieves $ 3,000.
$ 42,000 and $ 49,000 are the major resistance levels
Bitcoin has been recovering in the past week due to three major factors.
First, Tesla CEO Elon Musk and MicroStrategy CEO Michael Sayler are encouraging bitcoin miners to use clean energy.
Musk and Saylor have moved on, talking with bitcoin miners in the United States about reliable energy consumption.
Talked with North American bitcoin miners. He committed to publishing current and planned renewable use and asking miners to do the same. Potentially promising.
– Elon Musk (@elonmusk) May 24, 2021
Second, the bitcoin futures market has largely reset. According to data from Bybt.com, when the BTC fell below $ 30,000, the open interest of the futures market fell from $ 27 billion to $ 11 billion.
This means that the futures market is not congested, increasing the likelihood of a more sustainable and gradual rally.
Third, Ethereum has been growing rapidly over the last few days, benefiting bitcoin and altcoins as well, as ETH has seen a profound improvement compared to BTC.
The major cryptocurrencies overall rebounding is improving the sentiment around bitcoin, leading to a gradual recovery of the crypto market.
In the short term, traders say that $ 42,000 is the significant short-term resistance zone and, after that, $ 49,000 is the macro selling area.
A pseudonymous businessman known as “Pantoshi” wrote:
“Many alt’s coming in some resistances +/- 5%. As discussed during nuclear, we have gained average reversion though $ BTC is stuck. It started the LH trend about a month ago. Bitcoin Pop + Would like to see 42k or alt maybe make your own LH and dip again. The clock is ticking. “
What is important to see?
In the near future, two major things to note for bitcoin traders are the exchange outflow and the $ 42,000 level.
Ideally, if the $ 42,000 level stays and the outflow of the bitcoin exchange rises simultaneously, it means that investor confidence in BTC and Whale is rising above $ 42,000.
There Concerns That could become a “dead cat bounce”, which is a short-term recovery, but if BTC keeps $ 42,000, the chances of a fake rally will be significantly reduced.