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Bitcoin prices hit their highest since May 21. (Photo by Chesnot / Getty Images)
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Bitcoin prices have seen a convincing rise in recent times, breaking above the $ 40,000 level earlier this morning and then extending those gains.
The world’s largest digital currency hit as high as $ 41,046.77 around 10:30 a.m. EDT, according to CoinDesk.
At this point, the cryptocurrency was trading at its highest since May 21, additional figures from CoinDesk reveal.
The price of bitcoin has been rising in recent times after a month where the price of digital assets repeatedly tested the $ 30,000 level.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Pankaj Balani, co-founder and CEO of Delta Exchange, spoke about this situation.
Bitcoin has rebounded strongly after testing the low thirty thousand zone a few times over the past three weeks, he said.
The sale seemed to have sold out and at the same time we had a number of positive triggers such as new purchases by MicroStrategy, El Salvador accepting BTC as legal tender and positive feedback from Paul Tudor Jones and Elon Musk.
The most recent of these developments included Musk saying on Twitter yesterday that Tesla would resume authorization of Bitcoin transactions when there is confirmation of reasonable (around 50%) clean energy use by miners with a positive future trend.
Today, hedge fund manager Paul Tudor Jones spoke about bitcoin when it appeared on CNBC Squawk Box, stating that:
I like bitcoin as a tool for portfolio diversification. Everyone asks me what should I do with my bitcoin? The only thing I’m sure I want 5% gold, 5% bitcoin, 5% cash, 5% commodity.
In addition to describing digital currency as a great diversifier, he pointed out that it could help him protect his wealth over time.
Julius de Kempenaer, senior technical analyst at StockCharts.com, also weighed in on these recent developments, indicating:
The claim that BTC rose following comments from Elon Musk and Paul Tudor Jones seems accurate. Whether this is a smart thing to do or react to remains to be seen.
For now, BTC is trading its recent lows.
Key technical levels
In addition to this more news-based commentary, de Kempenaer, along with other market watchers, offered technical analysis.
While bitcoin topped $ 40,000 for the first time since May, de Kempenaer described that price as more of a psychological level than anything else.
The real test lies at a resistance of around $ 42,000 to $ 42.5,000 where the January 2021 peak and late February 2021 low lie, he said.
Scott Melker, a crypto investor and analyst who hosts The Wolf Of All Streets podcast, offered a similar perspective.
As a technical analyst, I don’t see 40K as a significant level for Bitcoin, although it’s always encouraging to break above psychological levels in round numbers, he said.
Most traders are watching the 42K area closely, as this is the level where the initial move from 2017 highs found resistance, Melker added.
It took a purchase of 1.5 billion Bitcoin by Tesla to finally break through that level. Having lost this level as support in the recent correction, this is the key area to watch.
Mark Warner, chief trading officer at BCB Group, also pointed to the $ 42,000 level, describing it as the next resistance to overcome. After that, the key level will be $ 46,000, he said.
Bullish outlook
While several analysts spoke about the fundamentals that drove bitcoin’s recent gains and commented on the key technical levels facing the digital asset going forward, Mike McGlone, commodities strategist for Bloomberg Intelligence, offered a positive outlook for cryptocurrency.
I see a fundamentally and technically strong bull market, he said, noting that demand is on the rise and supply is declining amid the early days of widespread adoption.
McGlone also raised the possibility of U.S. regulators approving bitcoin exchange-traded funds (ETFs). While this development has not yet materialized, he calls it inevitable.
The advent of American ETFs, which I see as a matter of time (on the backs of the rest of the world, Canada and Europe) and of a market that provided a decent haircut for the risks of further Delays. ETF approval.
In other words, bitcoin is currently undervalued for a number of reasons including falling supply, rising demand, and the approval of the US ETF that it considers certain in the long run. .
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS.
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