Bitcoin has been experiencing a strong gain in recent weeks after a devastating meltdown in May that made the token lose nearly 50% of its value. Compared to altcoins, bitcoin has been showing overwhelming resistance and looking at its values now, the coin seems to be regaining, and we may be back to the above $40,000 levels.
Bitcoin’s bad luck was caused by increasing China regulations on the crypto market. Besides, Elon Musk stopping his partnership with bitcoin also triggered a massive selloff. At the time of writing, bitcoin was trading at $39,338, a significant gain over the weekend.
Bitcoin Price Analysis
BTC has broken out of its previous resistance level, and the token is now moving up towards a higher resistance level of $43,250. Last week, bitcoin fell to its lowest level of $31,000, but it has bounced up again, and it has reached a weekly high of above $39,000.
Looking at the chart above, it is clear that BTC is in a strong bull now, although it remains uncertain whether this bull will hold or not. The next resistance level is at $40,000 and $43,000, and there is a high possibility that a breakout may happen.
However, there is still a chance that the coin may retreat to around $34,000, which makes the current buy position a high-risk level and a good reward level. If the token breaks past $40,000, it will create a lot of excitement in the market, which will boost demand, which will consecutively raise the price.
BTC reached above $60,000 in April after the coin gained popularity from institutional adoption. However, the massive bull stopped after the CEO of Tesla, Elon Musk, announced that his company would suspend accepting BTC payment. This announcement, coupled with the restrictions in China, pushed bitcoin to almost below $30,000.
However, the 12% gain over the weekend was thanks to Elon Musk, who said that Tesla was considering reinstating BTC as a means of payment. Musk responded to a tweet saying that the electric car manufacturing company would accept bitcoin again after 50% of mining operations shifted to renewable energy.
This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.
When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.
— Elon Musk (@elonmusk) June 13, 2021
The other good news for bitcoin in the past week is that the token’s ETFs in Canada have also gained demand from institutional investors. A report from Coingape stated that Purpose ETF in Canada has accumulated an additional 300BTC to its kitty in the past week, which has boosted the value of the digital asset.
Where to buy Bitcoin
As mentioned earlier, now may be the best time to buy bitcoin because the reward is significantly high if the coin pushed past $40k. If you want to buy bitcoin securely and easily, the best place to check would be from a cryptocurrency exchange such as eToro.
eToro is a highly ranking exchange that is easy to use, and it charges relatively low trading fees. For those who are new to cryptocurrency trading, eToro maximized your chances of earning a profit because it has a copy trading feature that will allow you to copy the trading strategies of experienced traders to help you maximize profits.
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