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Bitcoin continues to climb past the $40,000 psychological level
Bitcoin Market Overview: January 7th 2021
Bitcoin rose above $ 40,000, hitting another record in 2021, before experiencing a short bearish correction, dropping below $ 38,000, and then rising again.
The standard digital currency is currently trading at around $ 38,700 as it is pulling back slightly after surpassing $ 40,000 during late trading on Thursday, January 7, at current prices the asset is up 33% over the same time last week and still doesn’t look ready for a correction yet.
Looking at price exchange movements can indicate when the inevitable correction will take place, and it is noticeable that bitcoin volumes across exchanges have just doubled from their previous all-time highs.
Bitcoin price doubled from its 2017 high
At $ 40,000 per coin, bitcoin speculators are paying high costs, this enthusiasm doesn’t seem to be fading at any time quickly, but unlike the 2017 bullish trend, when buying for the craze finally led many to imagine the cryptocurrency bubble was capable of Upon blast, this race exhibits completely different traits.
Bitcoin has been on a gradual upward trajectory since March last year, other than short-term advancement and is slightly equivalent, it hasn’t stopped rallying when it comes to daily efficiency since then, and for now, it maintained its momentum until it finally broke the psychological barrier of 40K. Dollars.
The jump, although spectacular, was only expected by many analysts, which made some say that this worthy rise seems the right time to spark the adoption of the cryptocurrency.
Less than a month after Bitcoin broke the price of $ 20,000, its value doubled to $ 40,000, and the total market value of the coin exceeded $ 700 billion, with the total value of the crypto market exceeding $ 1 trillion.
Pay no attention to the warnings
After the leading digital currency crossed the $ 37,000 level, industry analysts and observers began to warn of the impending correction of the bitcoin currency that the crypto market is likely to follow its usual approach completely. They say that what is going up should fall and the cryptocurrency is no stranger to huge market corrections, although Warning flags waved, the digital asset brought them to continue achieving new heights.
Several other metrics indicate that record-breaking Bitcoin flows to central exchanges could be a precursor to a selloff.
Supporters of cryptocurrencies expected bitcoin to gain momentum in 2020 thanks to the bonus halving mechanism in assets, and at best, investors expected a repeat of the 2017 march, but the law of diminishing returns made such a scenario an unlikely reality, and instead, the currency doubled its peak value. The previous one in 2017 broke through $ 40,000, and the current bullish trend is now the second strongest trend in the history of digital currency.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.