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For the first time in a month, Bitcoin’s price is back to strong growth and testing the $40K resistance. BTC is as unpredictable as ever.
Since mid-May, the weeks have looked the same for BTC. The price has alternated between rises and falls but has not returned to its pre-crisis levels. Glassnode suggested a week earlier that a rebound seemed highly unlikely before the summer.
The forecasters, as is often the case with BTC, were wrong. The cryptocurrency is starting the week with a sharp spike in its price, and in the space of only a few hours.
Within 3 hours, the price of Bitcoin was up more than 10%. The value of the crypto-asset jumped from $35,000 to nearly $40,000 on July 26. The increase even reached 15%. BTC thus tested the resistance of $40K.
This is the first time during July that Bitcoin has returned to this level. The momentum at the beginning of the day is fading, however. This morning, BTC was up just under 10% to $38K.
This still represents a real contrast to previous days. Remember, for example, that it took Bitcoin 5 days to rise from $30,000 to $34,000. But how to explain this sudden escalation?
Traders could be lost for words trying to explain it. In fact, several favorable factors have been in place for a few weeks now. For example, the decrease of BTC reserves on exchanges and the accumulation strategy of investors.
Despite these levers, Bitcoin stagnated and even fell below $30,000 a week ago. The news of the last few days could explain part of this rebound. A source at Amazon suggests that the e-commerce giant is in the process of accepting payments in Bitcoin.
At a major conference, Elon Musk suggested that Tesla might once again accept BTC. The executive also said that SpaceX owns Bitcoin. The billionaire finally owns BTC, ETH, and DOGE.
Bitcoin is once again becoming a driving force for the cryptocurrency market in this context. As is often the case in a market with low trading volumes, Bitcoin is pulling other assets in its wake.
According to CoinMarketCap, total crypto capitalization is recording nearly 8% growth. Several major assets like Cardano, BCH, Dogecoin, Chainlink, Polygon are exceeding a 10% increase. Will the rest of the week maintain this course?