Bitcoin Gains 13% as Cryptoasset Moves Near $40,000

Bitcoin Gains 13% as Cryptoasset Moves Near $40,000

After a long time slumber, Bitcoin, the largest digital asset, gains 13% on Monday according to data from various crypto exchanges. Also, the price of the cryptoasset was seen near $40,000 in the early trading hours following a renewed investor’s sentiment. 

Top crypto assets prices break out amid a tight squeeze as bulls aim for recovery despite global crackdown and a budding interest in the regulation of cryptocurrency across the globe.

Despite the pressure, global acceptance keeps soaring but not without profit-taking activities with China, the UK and American among others gunning for steep regulation of the market.

Bitcoin price soared by nearly 20% following a massive bullish comeback toward the end of the weekend and the start of the new week’s trading.

Analysts think the bellwether cryptocurrency had already confirmed support above $32,000, allowing bulls to focus on levels heading to $40,000

It was noted that several resistance levels were pushed into the rearview, including the 50 Simple Moving Average (SMA), the 100 SMA, and $36,000. Bitcoin nearly brushed shoulders with $40,000 but is trading at $38,400 at the time of writing.

Bitcoin (BTC) buyers were active over the weekend as the cryptocurrency broke above the 50-day moving average near $34,000.  The intermediate-term downtrend initially reversed, although resistance near $40,000 could trigger some profit-taking.

Upside momentum is improving after several months of consolidation and multiple oversold readings on the charts.

Bitcoin was trading around $38,000 at press time and is up 13% over the past 24 hours. Early Monday, the price climbed to about $39,500.

The relative strength index (RSI) on the daily chart is approaching overbought levels for the first time since April. This could precede a brief period of profit-taking near the 100-day moving average at $40,000.

The weekly RSI is not yet oversold, although selling pressure from May is starting to slow. Price action is consistent with previous rallies from $30,000 support, albeit more persistent given the break above the 50-day moving average.

Read Also: Ethereum Hits All-time High on Supply Scare after Upgrade

Bitcoin remains in a consolidation phase until the price moves above $40,000, which is the top of a two-month range. Initial support is seen around $34,000, which could stabilize a pull-back. 

Bitcoin Gains 13% as Cryptoasset Moves Near $40,000