Bitcoin looking at the bullish side
The cryptocurrency market is trying to pull itself out of the mass correction; however, some coins remain under the influence of bears. The price of Bitcoin exceeded $ 40,000 this morning, breaking above a key sales area for the first time in a week. Traders expect a wider gathering and formation of a bullish market structure if it continues to grow above $ 42,000. Bitcoin has been recovering over the past week due to the following three factors:
- First, Tesla CEO Elon Musk and MicroStrategy CEO Michael Sailor encourage bitcoin miners to use cleaner energy. Musk and Sailor went further, talking to bitcoin miners in the United States about reliable energy consumption.
- Second, the Bitcoin futures market has largely reset and moved in a positive direction. This means that the futures market is not overcrowded, which increases the probability of a more sustainable and gradual gathering.
- Third, Ethereum has been on the rise over the last few days, benefiting Bitcoin and altcoins because ETH has seen a deeper correction than BTC. Major cryptocurrencies are recovering as a whole and improving the overall environment around Bitcoin, leading to a gradual recovery of the crypto market.
If the $ 42,000 level remains and the outflow of Bitcoin exchanges increases, it would mean that investor confidence in BTC and Whales grows above $ 42,000. More experienced investors took the opportunity to accumulate BTC with a 50% discount of $ 30,000, new number accumulation addresses are reached new highs all the time amid this price drop.
Delphi Daily’s report by Ashvath Balakrishnan on May 24 highlights the sharp rise in the supply of stable fiat-backed coins, which has increased from 15 billion to almost 21 billion in the last 5 days. Ethereum’s volume grew and surpassed Bitcoin just days after a report leaked from Goldman Sachs, which revealed that a global investment bank believes Ether has a high chance of overtaking Bitcoin as the dominant storehouse of value. The report noted the growth of growing decentralized finance and other essential tokens being built on Ethereum and the dominance of ETH over Bitcoin in the total volume of transactions.