The crypto market was mostly in the green territory on Thursday, with Bitcoin recovering all of the previous day’s losses and even surged to a 10-day high beyond the $42,000 level.
According to Coingecko data, Bitcoin traded at $42,484.88, an increase of 3% over the previous seven days.
Ethereum also experienced a local high but most of the cryptocurrency market was still in the green daily.
Following yesterday’s bounce, bulls continued to push prices higher. After breaking through a crucial resistance point, BTC surpassed $42K. ETH also surpassed $3,150 after it temporarily dropped below $3K.
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Following a period in which Bitcoin’s price dropped as low as $38,000, Bitcoin has now reclaimed the $42K mark. These price gains and their strong performance indicate that Bitcoin could be on the verge of another bull run.
Strong Performance for Bitcoin
In the past 24 hours, the cryptocurrency has reached another minor milestone. It has now surpassed the January 2021 record of $42,000. This is the first achievement since April 11. At the time of writing it was slightly below this threshold with a market capitalization approaching $800billion.
If Bitcoin’s momentum finally reverses, market analysts may begin to see an influx of bulls, perhaps pushing price towards the impending resistance level of $42,700.
Crypto market cap total at $1.92 Trillion according to the daily chart. Source: TradingView.com| Source: TradingView.com
Anticipation Grows For ETH Upgrade
The price of Ethereum has been unusually volatile in recent weeks as anticipation grows for the cryptocurrency’s huge software upgrade.
Investors and developers have coined the term “the Merge,” and it is expected to occur in the next months.
Tim Beiko, an Ethereum engineer, tweeted on April 11 that “the Merge” will not take place in June as previously projected.
Bitcoin’s massive increase is the result of large crypto traders accumulating more of the cryptocurrency at a discounted pricing.
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Additionally, significant liquidations in the futures market, notably in long positions, have pushed Bitcoin’s price above $41,500.
On the other hand, this massive liquidation implies that a major portion of the trading community has lost interest in the world’s largest cryptocurrency.
Economists predict that Bitcoin could reach $45,000 by the end of this year if Bitcoin buyers can overcome initial resistance at $42,000. A rally up to $48,000 is possible once the $45,000 overhead barrier is cleared.
Featured image from Barron’s, chart from TradingView.com