Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,09 trillion. Bitcoin is up by over 2% to reach around $27,200. Ethereum increased by nearly 6% to close to $1,700. XRP gained almost 2% in value during a highly volatile week. Almost all altcoins are trading in the green, with virtually no exceptions. The DeFi sector maintains the total value of protocols (TVL)…
On August 6th, for the first time, Bitcoin hit the $42.9k mark after retracing with a super price surge from merely $39k. It’s the first time bitcoin hit the mark in over two and a half months, and as seen, this bullish trend could continue for a while. This bullish trend could have a positive impact on the entire crypto space if it continues.
Bitcoin on a Bullish
For the first time in over 80 days, bitcoin currency hit the $43k mark and is continuously bullish. In just the past 24 hours, the currency has made an around 5.44% price jump.
The last time Bitcoin traded at around the 42.9k mark was on May 18th, 2021, when the prices were plunging. The coin’s prices later dropped to below $30k; thus, bitcoin lost over half of its value. However, bitcoin reversed course, and recently, bitcoin jumped by over 10%, from $39k on August 3rd. As a result, it surpassed the initial pivotal resistance level of $42.3k. The next resistance level the currency is currently facing is $43.05k.
If the current bitcoin buying pressure continues, Bitcoin could head to higher peaks, surpassing the $43.05k mark, and face a new resistance and $43.8. An uptrend is more likely to continue, for now, more than a downtrend, but it’s still possible that a downtrend could occur.
A Downtrend is Possible
It’s essential to know the support level to understand if a downtrend is possible. Most charts show that bitcoin’s closest support level is somewhere in the $39k. Is it at all possible that the coin would plunge that far?
Currently, the trading volumes of bitcoin are very high, meaning the supply and demand pressure is forcing the currency to surge. In fact, according to CMC, the trading volumes have increased by over 20.4% in the past 24 hours. As a result, it’s safe to say that investors currently have a very high confidence level in the currency.
As the coin continues to gain prices, it may reach a point where investors lose their confidence or demand due to high prices. A slight downtrend may occur in such a case, which could return the coin to around $40k, still a little higher than the $38k support level. However, the more likely route for bitcoin to follow is an uptrend.
The Effect On Crypto Markets
Bitcoin is currently on a pattern similar to Ethereum; only Bitcoin is making bigger retracements. Therefore, it’s possible to conclude that Ethereum’s surge could have caused bitcoin’s surge. Although Ethereum’s upgrades can be credited for the recent price changes, it’s good to remember that Ethereum’s prices often depend on Bitcoins surges.
Furthermore, the crypto market is always vastly affected by any price changes in the BTC currency. Therefore, enthusiasts can await the incoming crypto surges, especially in top coins like Ethereum, Cardano, etc. Hence, crypto enthusiasts hope that these retracements in Bitcoin will start a new chapter in crypto markets.