Bitcoin might have zig-zagged around the $40k mark—precisely what the trading community wants.
As of writing, the Bitcoin price is slightly below the psychological round number. However, buyers are ecstatic, expecting a moon-shoot in the days ahead.
There are encouraging fundamentals that could fuel the surge.
There are more Bitcoin and Crypto Holders
For instance, there are more Bitcoin and crypto holders.
Blockchain’s popularity continues to rise as more people across the globe realize the advantage of distributed and censorship-resistant financial products.
Bitcoin is one of blockchain’s first applications. Statistics now place the number of holders at above 116 million. This is double the number of holders early this year—happening what is technically a bear market.
Over the last three to four months, the price of Bitcoin more than halved, sinking from $64k to below $26k in an unforgiving correction.
The number could further rise as PayPal plans to extend the buying and selling of cryptocurrencies to the U.K. from August.
Regulation Props Bitcoin and Crypto
Analysts also expect Bitcoin to permeate and find adoption across the globe more so as more progressive regulations are formulated and made law.
The push by lawmakers, especially in the U.S., for regulation is a breath of fresh air for institutions.
Bound by compliance requirements, they can only invest in Bitcoin and gain the much-needed exposure only if there are guiding laws.
The U.S. could trigger other governments to follow suit wholesomely, helping the community grow, directly supporting crypto prices.
Bitcoin Price Analysis
As of writing, the Bitcoin price is stable but up an impressive 22 percent in the past week of trading.
Technically, the candlestick arrangement in the daily chart favors buyers—specifically, the surge past $36k triggered demand, lighting buying pressure.
Accordingly, as it is, every low could provide a loading opportunity for aggressive traders targeting $42k in the short term.
A close past this psychological resistance level could see BTC/USD further lift off towards $50k in the medium term.
The case will be stronger if the breakout is with a marked uptick in trading volumes.
On the flip side, $36k is the immediate support line, anchoring buyers.
Charts Courtesy of Trading View
Disclaimer: Views expressed are those of the Trader. Do your Research.
If you found this article interesting, here you can find more Bitcoin news