Home News Bitcoin price rebounds to $40K: Is a bigger crypto rally looming?

Bitcoin price rebounds to $40K: Is a bigger crypto rally looming?

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The cost of Bitcoin (BTC) again approached the $ 40 thousand mark, and Ethereum (ETH) is gradually returning to $ 3,000. This happened against the background of the message of the head of Tesla and SpaceX about a meeting with representatives of the mining of digital assets on the use of renewable energy sources.

The meeting, which was held in a closed format, was organized by MicroStrategy CEO Michael Saylor. The event was attended by representatives of Agro, BLOCKCAP, Core Scientific, Galaxy Digital, HIVE, Hut 8, Marathon and Riot.

As a result of the meeting, it was decided to organize a Bitcoin Mining Council. He will develop reporting standards for energy consumption in the field of cryptocurrency mining.

Against this backdrop, most cryptocurrencies have begun to recover, which generally improves sentiment around Bitcoin, and leads to a gradual recovery in the cryptocurrency market.

Roller coaster of Bitcoin

At the end of last week, Bitcoin in total lost about 15% of its value after news from China. The authorities announced measures to restrict the use of cryptocurrencies as a means of payment, and later that they would move on to drastic measures regarding the mining and trading of Bitcoins.

And the strongest decline in the current month fell on May 12 and 19 (13% and 14.5%, respectively). Then Musk wrote that the company had suspended the sale of its electric vehicles for Bitcoin. At the moment, Bitcoin has lost almost 42% of the April historical record.

We can say that over the past week, Bitcoin has experienced a real roller coaster. The price of Bitcoin dropped to about $ 31,000 from $ 41,000, then recovered to $ 35,000. Altcoins also suffered. Although just a month ago, Bitcoin was going through a long period of consolidation and Ethereum was flourishing.

The market looks good right now, even if it hit hard over the weekend. Both cryptocurrencies are gradually gaining momentum at a comparable rate. However, many analysts note that at the moment the rebound attempts don’t inspire confidence. Especially considering that the recovery had already been replaced by new sales earlier.

At the moment, traders believe that $ 42,000 is an important short-term resistance area for Bitcoin.

Cryptocurrency speculation

The main negative message of recent times is that the crypto market, although it has seriously matured over the past few years, still remains extremely exposed to the influence of a small number of factors and statements from reputable influencers. Such as (the founder of the American electric car manufacturer) Elon Musk.

“Bear trap”

To boost demand and cause stock prices to rise, institutions can lower prices to make markets look bearish. This forces novice investors to sell stocks. As soon as stocks fall, investors return to the market and stock prices rise along with increased demand.

So, while many novice traders are afraid to open positions or even sell an asset at a loss, advanced investors buy Bitcoin on a collapse.

In the midst of the market crash on Wednesday, Bitcoin-whales acquired 122,588 BTC, thereby keeping the value of the coins above a certain level. This means that holders of large capitals have no doubts about the prospects for a niche of coins.

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