In the past few days, the cryptocurrency ecosystem has seen a slight rejuvenation due to a revival in Bitcoin (BTC) price.
With the recent uptrend, the combined crypto market cap is currently pegged at $ 1.55 trillion, up 1.13% at the time of writing, so CoinMarketCap. While hoarding all digital assets contributes to this number, Bitcoin dominance accounts for 48.8% of total market capitalization.
Bitcoin Fundamentals promises new benefits
Bitcoin critics have often claimed that the leading digital currency has limited utility when compared to other cryptos, including Ethereum (ETH). However, the adoption of the digital asset by institutional investors and multinational corporations seemed to have demolished these claims.
Last week, Amazon posted an ad looking for a digital currency expert, a move many believe is aimed at steering the e-commerce giant’s entry into accepting Bitcoin for payments. While Amazon has disproved these claims, many Bitcoin proponents believe that current developments in the BTC ecosystem will eventually make the coin an important part of the payments system used by Amazon and other such companies.
Bitcoin price was also resurrected by two key revelations from Elon Musk, who found that his privately held company SpaceX also has a Bitcoin allocation. Musk, who initially stopped Bitcoin payments for Tesla due to the cryptocurrency’s excessive energy consumption, also announced that the electric car maker could soon be accepting Bitcoin for payments again. Musk said this change of heart stems from the fact that the transition to green energy for mining the cryptocurrency is improving.
These and other fundamentals helped push Bitcoin to test a fresh high within a month after rising to $ 40,816.07 in the past 24 hours.
Bitcoin volatility suppresses growth
After Bitcoin’s impressive run for the past 24 hours, the leading coin is currently experiencing extreme volatility around the USD 40,000 support level. The coin is currently reducing its accumulated profits and changing hands at $ 39,775.60, down 0.12% in the last 24 hours.
Consider the BTC /USDT 4-hour chart on TradingView. The recent uptrend has seen Bitcoin break key resistance points, including the $ 32,000, $ 36,000, and $ 40,000 price points since July 20th. Such an endless run to the top requires consolidation as some short-term buyers may opt for profit-taking. Both the RSI and Donchian Channels indicators show the consolidation setting in.
At this point, the strength of the bulls is required to prevent a free fall past the USD 37,000 support zone. A break below this level can trigger a new sell-off that will push the price down. However, should the ambitions of the past few days repeat, a move towards the USD 45,000 resistance point could be tested in the coming weeks.
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