Bitcoin Analysis: BTC Tries to Break $40,000 Resistance
Bitcoin volatility hit the front pages again after the cryptocurrency briefly climbed again to $ 40,000 before returning to the $ 39,000 level. Coming after a two-week bear loom that began on July 15, this is the second time that Bitcoin is trying to break the $ 40,000 resistance in two days.
Based on data from Cointelegraph Markets Pro and TradingView, BTC has witnessed BTC / USD pair trading bulls since July 21. This resulted in a jump of 34.13% in just seven days.
The crypto community attributes the rising price of BTC directly to an increase in traditional banks and entrepreneurs such as Elon Musk and Michael Sailor. This week, Amazon’s rumour about involvement in cryptocurrencies also raised the price, although the technology giant later denied those rumours.
Last month, Bitcoin was adopted as a legal tender in El Salvador, joining the US dollar.
The new law on bitcoins in the country will allow Salvadorans to use bitcoin (BTC) as a currency for the purchase of goods and services. As well as, the payment of taxes and debt, which will be applied from September 7.
The president of El Salvador stated that the adoption of bitcoin would have a great benefit for 70% of the local population that does not have access to banking services. He also believes that it will attract investments and create new jobs.
However, the Bitcoin law has raised multiple concerns. Sceptics say the high volatility of the cryptocurrency could pose a threat to the country’s financial stability. The very low rate of internet penetration and the lack of education about bitcoins and cryptocurrencies in the country could also prevent bitcoin from reaching widespread acceptance in El Salvador.
To boost bitcoin adoption, the president has vowed to build the necessary infrastructure. This includes 1,500 Bitcoin ATMs and a government wallet that should guarantee the immediate conversion of Bitcoin into dollars.
According to recent blockchain-based data, more than 93,000 BTCs have been transferred between anonymous cryptocurrency wallets in the past hour.
Data shared by the Whale Alert cryptocurrency tracking service shows that a whopping 69,058 BTC has been moved between wallets with unregistered owners in the past hour. Hours earlier, Coinbase had received 24,000 Bitcoins from wallets also marked anonymous.
The whale warning team detected seven transactions from approximately 9,900 to 9,700 each. That totals 69,052 and amounts to a staggering $ 2,745,014,065. Before that, the blockchain tracker spotted two consecutive transactions, carrying 12,000 BTC each and a total of 24,000. That represents $ 953,985,600.
The total value of the bitcoin transfer is $ 3,698,999,665.
As U. Todai previously reported, during the last six weeks, cryptocurrency whales (with wallets of 100 BTC and 10,000 BTC) bought a huge 170,000 Bitcoins, according to data provided by the analytical company CryptoQuant.
The data shows that the whales at the bottom have grabbed 130,000 BTC in the last five weeks. In the last 10 days, they have added another 40,000 Bitcoins to their wallets. 170,000 BTCs were worth approximately $ 6,299,996,000 on Tuesday, July 27th.
On Monday, the leading cryptocurrency briefly regained the level of 40,000 dollars after it fell below 30,000 dollars on July 21. It recovered to 32,300 dollars thanks to the B-Word conference between Musk and Dorsey. It was traded in that area for about a week.
The increase to 40,000 dollars happened before the publication of the report on the earnings of Tesla K2. Another reason for the growth was the short pressure that the Bitcoin market is facing. In addition, Musk stated that neither he, nor Tesla, nor SpaceX would sell their bitcoins.
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