Bitcoin prices have been on a tear lately, breaking beyond the $40,000 barrier this morning and then extending their gains.
Around 10:30 a.m. EDT, the world’s most popular digital currency achieved a high of $41,046.77.
The cryptocurrency was trading at its highest level since May 21 at this time.
After a month in which the digital asset’s price was frequently tested at $30,000, bitcoin’s price has recently risen.
Delta Exchange’s cofounder and CEO, Pankaj Balani, spoke about the matter.
“At the same time, we had a number of positive triggers such as new purchases by MicroStrategy, El Salvador recognizing BTC as legal cash, and good comments from Paul Tudor Jones and Elon Musk,” says the author.
Musk recently stated on Twitter that “Tesla will resume permitting Bitcoin transactions” “when there is confirmation of fair (50 percent ) renewable energy usage by miners with a positive future trend.”
Bitcoin Price Increase: Bitcoin Confirms Massive New Upgrade As Ethereum, Cardano, Binance’s BNB, and Dogecoin Compete. When appearing on CNBC’s “Squawk Box” today, hedge fund manager Paul Tudor Jones praised bitcoin, saying:
“Bitcoin appeals to me as a portfolio diversifier. Everyone wants to know what I should do with my bitcoin. The only thing I know for sure is that I want 5% of my portfolio in gold, 5% in bitcoin, 5% in cash, and 5% in commodities.”
In addition to calling the digital currency a “wonderful diversifier,” he said it may help him protect his “wealth over time.”
Julius de Kempenaer, a senior technical analyst at StockCharts.com, commented on the recent developments as well, saying:
“The claim that BTC climbed as a result of Elon Musk and Paul Tudor Jones’ comments appears to be correct. It remains to be seen whether that was a wise thing to do or react to.”
“For the time being, BTC is trading near its recent lows.”
The Most Important Technical Levels De Kempenaer, like other market commentators, provided some technical analysis in addition to the more news-based remarks.
Although bitcoin surpassed $40,000 for the first time since May, de Kempenaer termed the price as more of a “psychological” “level” than anything else.
He remarked, “The’real’ test comes around resistance around $42k-42.5k, where the Jan 2021 peak and late Feb 2021 bottom are positioned.”
Scott Melker, the presenter of The Wolf Of All Streets Podcast and a crypto investor and analyst, shared a similar viewpoint.
“As a technical analyst, I don’t think 40K is a meaningful threshold for Bitcoin, though breaking psychological barriers around round numbers is always encouraging,” he said.
“Most traders are keeping a careful eye on the 42K mark, as this is where the initial rise from the 2017 highs ran into resistance,” Melker noted.
“It took Tesla buying 1.5 billion bitcoins to finally break beyond that barrier. This is the critical region to watch after losing that level as support during the latest correction.”
The $42,000 mark was also picked out by Mark Warner, head of trading at BCB Group, as “the next hurdle to overcome.” The crucial threshold after that, he said, will be $46,000.
Positive Prognosis While various analysts discussed the fundamental elements that drove bitcoin’s recent increases and the major technical levels the cryptocurrency would encounter in the future, Mike McGlone, a commodity strategist with Bloomberg Intelligence, gave the cryptocurrency a favorable outlook.
He stated, “I see a fundamentally and technically solid bull market,” noting that “demand is on the rise and supply is dropping in the early days of mass adoption.”
McGlone also discussed the possibility of regulators in the United States accepting bitcoin exchange-traded funds (ETFs). Despite the fact that this development has yet to happen, he regarded it as unavoidable.
“The arrival of U.S. ETFs, which I regard as a matter of time (on the heels of the rest of the globe, Canada, and Europe) and a market that has granted a good discount for the risks of further ETF clearance delays, is a key dangling carrot of bullishness.”
In other words, bitcoin is currently undervalued for a variety of reasons, including dropping supply, rising demand, and the long-term certainty of ETF certification in the United States, according to him.