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Bitcoin Price Analysis: BTC tests $41,000 previous swing high, bears to prevent further upside?

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Bitcoin price analysis indicates bearish momentum to follow over the next 24 hours as the previous major swing high of around $41,000 gets tested for the second time over the past days. Therefore, unless a clean breakout is seen over the next hours, we expect BTC/USD to retrace lower and start reversing to the downside again.

Bitcoin Price Analysis: BTC tests $41,000 previous swing high, bears to prevent further upside? 1
Cryptocurrency heat map. Source: Coin360

Cryptocurrency market trades in the green over the last 24 hours. Bitcoin has rallied by around 5.5 percent, while Ethereum by 0.16 percent. Ripple (XRP) has increased by 11 percent and is among the best performers.

Bitcoin price movement in the last 24 hours: Bitcoin tests $41,000 resistance again

BTC/USD traded in a range of $37,439.40 – $40,816.07, indicating a moderate amount of volatility over the last 24 hours. Trading volume has slightly decreased by 3.87 percent and totals $38.9 billion. Meanwhile, the total market capitalization stands around $761.8 billion, resulting in market dominance of 48.4 percent.

BTC/USD 4-hour chart: BTC prepares for a reversal?

On the 4-hour chart, we can see Bitcoin price action testing the $41,000 resistance for the second time this week with signs of exhaustion for further upside.

Bitcoin Price Analysis: BTC tests $41,000 previous swing high, bears to prevent further upside?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has traded with an extremely strong momentum over the past few days. After previous major support level of around $29,500 was tested on the 20th of July, BTC/USD rallied to $41,000 previous major swing high and rejected further upside on Monday.

From there, BTC retraced to retest the $36,500 previous resistance as a support and built up momentum for another push higher. Yesterday, BTC/USD started to rally again and reached the $41,000 resistance earlier today once again.

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Currently, the $41,000 mark still gets tested with a slightly local high set again. However, we can expect a lot of selling pressure to come in for any further attempt. Therefore, BTC/USD is likely to decline later today and potentially start retracing most of the 35 percent upswing seen over the last days later this week.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish for the next 24 hours as previous resistance around $41,000 currently gets retested for the second time. Therefore, we expect BTC/USD to respect the resistance and move lower later today to test previous support levels.

While waiting for Bitcoin to decline, read our guides on Bitcoin fees, DeFi advantages, as well as what can you do with Bitcoin.

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Bitcoin Drops as China Declares Crypto-Businesses Illegal

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  • China declared that cryptocurrency-related businesses are illegal
  • Bitcoin, Ether, and stablecoin Tether do not qualify as legal tender in China
  • BTC drops in price as the announcement went out

Once again, China reiterated its antagonistic stance on Bitcoin and the cryptocurrency industry as a whole.

In an announcement, the People’s Bank of China (PBOC) mentioned that BTC, ETH, and USDT are not legal tenders in China. They added that these cannot be used in the currency market.

Additionally, the central bank deemed all crypto-related businesses as illegal. This includes overseas exchanges serving residents within China and derivative transactions.

Following the news, Bitcoin’s price fell by almost $2,000 as the news circulated. This has been a common pattern whenever China FUD comes out.

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Earlier, China also reiterated its stance on crypto trading and mining while testing the Digital Yuan. According to the PBOC, it will continue releasing regulatory pressure over the crypto trading industry.

Despite the negative news, many analysts remain bullish on Bitcoin and the cryptocurrency industry as a whole. According to analyst Lark Davis, this is not new and will happen again in the future.

In a tweet, Davis mentioned that “The year is 2025, #bitcoin has just corrected from 400k to 250k on China banning BTC fears.”

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Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto

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Early Bitcoin developer and co-founder of Ethereum and Polkadot, Gavin Andresen, is outlining a future where BTC rises to a staggering $6,000,000 per coin.

Gavin Andresen, who took over as Bitcoin’s lead maintainer from founder Satoshi Nakamoto in 2011, just published a new blog post detailing how BTC’s theoretical evolution could look.

Andresen describes a “possible” scenario where Bitcoin hits a price tag of $6,000,000 by 2061, transaction fees 326x higher than they are now, and the blockchain is used chiefly by whales.

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“Imagine: it is the year 2061. The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation.

Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction).

But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multi-signature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens.”

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In his scifi scenario, Andresen says those who do remain on Bitcoin’s network will be incentivized to keep it alive.

“The transactions that do occur on the main BTC network are high-value, mostly between super-whale-size holders…

These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay.”

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However, Andresen says that by 2100, even those users would likely leave the blockchain.

“In the year 2100 the whales notice that the mining reward is basically zero… Eventually, there are zero new BTC being produced on the BTC network, and zero BTC circulating on the BTC network. There is nothing left to secure, and the chain stops.”

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Crypto trader Michaël van de Poppe is looking at what’s ahead for Bitcoin (BTC) and the smart contract platform Cardano (ADA).

The analyst tells his 420,000 Twitter followers that the best entry point for Cardano may be gone after the asset bounced off a key support level at $1.86.

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“If you want to get into Cardano, this was the region where you would want to get into it, and the higher low that might be created.

So based on the daily timeframe, the best entry might be gone, but you’re still getting a better entry than the ones who have been buying around $2.80.”

Van de Poppe is now looking to see if ADA can turn resistance at the $2.37 level into support.

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If the markets correct further, he is keeping an eye on the $2.15 level as a potential buy zone.

“When you’re looking at the four-hour time frame, I think you’re getting the exact same view as what you have right now on Bitcoin and [Ethereum], actually. So you’re going to look for an entry point which is around the fact of $2.15, so anything in this region might be a good entry point if we get a corrective move.”

Looking at the Bitcoin pair, van de Poppe thinks that ADA will most likely consolidate briefly after retesting support at its previous all-time high.

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“We can see that we’ve had a beautiful retest of the previous high here too, and therefore some consolidation is most likely going to take place before we’re going to have new impulse waves.

So both the USDT and BTC pair are looking for continuation, and I think that’s just great, and I think that’s just what we want to see with the markets right now.”

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