Bitcoin Recovers, Pierces $40k as Traders Expect More Gains
For the second day running, the Bitcoin price retested $40k, waving around the psychological round number, fanning demand.
Overall, traders are hopeful of follow-through of early this week gains in a buy trend continuation pattern they say could lift BTC/USD back above $50k and even $60k in the medium term.
The zone between $40k and $42k remains an important level for chartists. This is because it marks January 2021 highs--a crucial resistance level that was broken before BTC prices tore above $60k, printing a new all-time high, over 3X of those of late 2017.
If anything, the recovery of Bitcoin prices is relieving for the crypto markets since the coin is directly correlated to most crypto assets. In leading exchanges like CryptoAltum, traders can profit from price fluctuations in pairs with BTC bases. At the same time, access to high leverage and fast deposit times means traders can get in and out of pairs without waiting for long to trade.
There are no specific fundamentals tied to the expansion. However, some analysts argue regulation is a precursor of something big on the horizon. This 'draining the swamp' could be in preparation for an eventual Bitcoin ETF approval, allowing deep-pocketed funds to diversify freely by gaining BTC exposure.