Bitcoin Price Retreats From $40,000 as Spectators Expect it to Hit $50K

 

For the first time, Bitcoin price smashed through the $40,000 to set a new all-time high on Thursday, 7 January 2021. The record-breaking rally helped the leading cryptocurrency in the world drive the market capitalization of the entire cryptocurrency industry past the $1 trillion for the first time

The flagship cryptocurrency recorded an all-time high of $40,367 only a few hours after breaking past the $39,000 price level. The flagship cryptocurrency has now gained by around 30 percent since the beginning of the new year, having rallied by 400 percent over the last 12 months. Although a pullback is underway, Social Capital’s Chamath Palihapitiya thinks Bitcoin has a lengthy runway ahead even after the record-breaking run.

At the time of writing, the leading cryptocurrency is trading at $38,639. The Relative Strength Index is reinforcing the new bearish slant as Bitcoin price withdraws from the overbought zone. If BTC continues backing down, the crypto may drop to the next support zone at $37,500. The next critical support is near the $36,500 multi-touch level. Perhaps this is an opportunity for additional investors before the number one cryptocurrency resumes its record-breaking bull run above the $40,000 price mark Bitcoin Rush

On the upside, if the BTC/USD pair wants to progress with the bullish rally, it will have to settle above the $38,000 key resistance. The next crucial sell-off zone is near $38,800, from which Bitcoin can break back above the $40,000 historical price level.

The entire crypto market, which consists of Bitcoin, Ethereum, and other cryptocurrencies such as LTC, XLM, TRX, and many others, breached the $1 trillion mark for the first time. Bitcoin is the most dominant cryptocurrency overall by far, with a market value of more than $700 billion. The record-breaking bull-run by king crypto can be attributed to several factors. For instance, the increased institutional demand and prominent professional investors such as Paul Tudor and Raoul Pal have acquired the crypto asset. Major BTC proponents claim that the top crypto asset is similar to gold in the digital version, a prospective haven and hedge against inflation.

Recent research conducted by Wall Street big bank JPMorgan Chase predicted that the price of Bitcoin could hit $146,000 in the future as it rivals gold as a substitute currency. Nevertheless, JPMorgan Chase analysts noted that Bitcoin would have to be less volatile to achieve this milestone. Bitcoin is famous for its savage price fluctuations. 

Bitcoin volume doubles on crypto exchanges

According to eToro’s Mati Greenspan, Bitcoin volume across crypto exchanges has more than doubled the previous all-time high. Onchain data indicates that there has been a rise in the influx of Bitcoin in centralized crypto exchanges, which could be a signal of an imminent heavy sell off. The current pullback from $40,000 might be a result of the sell-off. The price of Bitcoin has more than doubled, and some traders feel that maybe it is the right moment to cash instead of holding longer.

 

 

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