Bitcoin posted an eight-day streak of consecutive wins that lifted the value to more than $40,000. Cryptocurrency trading to $30,000 on July 21st and has been rising ever since.
If it ends the day in green, bitcoin would have its longest streak since October 2015.
But by the time it went to press, the largest cryptocurrency was down from Thursday at 12:00 a. m. , Coordinated Universal Time, below $40,000.
Related: Bitcoin struggles to resist; Lowest near $34,000
“After this eight-day rally, bitcoin may have to restart as it looks like a bearish divergence in the short term,” said Laurent Kssis, managing director of publicly traded products at 21Shares AG.
On the Bitcoin chart, the value stock develops as the right shoulder of a more sensitive head and shoulder formation at a range of $28,000 to $42,000, said Imran Yusof, technical analyst at Quantum Economics.
Yusof noted that the upper formations of the head and shoulders are bearish.
“This diversity corresponds to the same diversity in the left shoulder era from Christmas 2020 to early February, also on the chart,” he added.
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For bitcoin’s rally to continue, “there is more interest from U. S. companies,” said Edward Moya, senior analyst at Oanda, an online broker, who believes bitcoin’s acceptance as a means of payment and firmer commitments from institutional investors will announce the meeting.
Bitcoin’s steady rise is a “clear sign that institutional investors are expanding their long-term positions,” Moya said.
Moya said planned discounts on the maximum leverage allowed on bitcoin derivatives transactions on cryptocurrency exchanges Binance and FTX can simply mitigate value volatility, which can attract new investors who are wary of maximum risk.
Discounts on leverage limits “should greatly support bitcoin’s long-term prospects,” Moya said.
“The importance of 8 consecutive days of gains is offset by the importance of the range mentioned above, i. e. the will of bitcoin is urgent above the $42,000 resistance to the will of bitcoin bulls that support less than $28,000,” Yusof said.
“If bitcoin can pass and stay above $35,000, there is a greater chance that renewed bullish sentiment could take it to $42,000 later,” he added.
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Market Summary: Bitcoin stagnaws around $40,000 as buyers make a profit