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Bitcoin tries to break the psychological resistance level of $40,000
Bitcoin Outlook: 3rd June 2021
With Bitcoin soaring to $39,000 in the past 24 hours and most other cryptocurrencies turning green, the total cryptocurrency market cap has crossed $1.7 trillion for the first time since Friday (May 28).
The leading cryptocurrency traded in a narrow range of around $37,000 for a few days this week, but finally corrected itself and jumped to a six-day high at around $39,000, most altcoins followed suit, with Ethereum climbing above $2,800, Cardano $1,87 and surging Binance is over $400.
The total market value rises above 700 billion dollars
The past few days have been somewhat unexciting for cryptocurrencies, especially bitcoin, which traded between the $36,000 and $37,500 ranges, with these levels plunging at the end of the week to below $33,500.
However, the leading coin finally took a more decisive step yesterday by breaking $37,000, and in the following hours, the bulls continued to ramp up their efforts to push the coin to around $39,000, hitting the highest price since May 28th.
Although it has rebounded a few hundred dollars since that rally, the market capitalization of the coin has beaten the required $700 billion level.
The second worst month for bitcoin trading
So far, history has not repeated itself in the second quarter as it turned out that May was the second-worst performing month for the currency after declining by 35%.
Although the second quarter has historically been a very profitable quarter for Bitcoin, the asset has failed to make any gains in the same period of 2021 until now, moreover, the coin ended May with heavy losses making it the second-worst performing month with a significant drop in percentage 35%.
In fact, May did not go well for the underlying cryptocurrency, which came after the remarkable month of April in which the coin reached an all-time high of $65,000 but eventually rebounded to below $60,000.
May started off fairly well, after bitcoin added a few thousand dollars in the first week or so and challenged the $60,000 target, however, the inability to break it aggressively caused concerns within the crypto community as proponents argued that if If the currency fails to beat it, its price may fall.
Indeed, the currency plummeted soon after, perhaps prompted by Elon Musk and Tesla’s rejection of bitcoin payments for the electric vehicle maker’s products, and increasing pressure following regulatory pressures from China, when the currency began to plummet.
Within days, the cryptocurrency dropped from $58,000 to $50,000 and then to $40,000, and eventually reached $30,000 on May 19. Since then, it has regained part of the losses but failed to cross $40,000.
In the end, Bitcoin finished May in the red, dropping 35.31% to become the second-worst performing month, after November 2018 which recorded a 36.57% drop.
It is worth noting that Q2 is mostly Bitcoin’s best-performing quarter, with gains averaging around 60% before 2021.
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.