3 reasons why Bitcoin price has not been able to rally back above $40K

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The price of Bitcoin has been in a prolonged downtrend since May, which has been supported by the supply side, but the demand side has also been affected, which has led to the price being supported at around $3,800. For now, we believe the downtrend will continue, but there is still an upside in the short to medium term, which means the price is likely to rally back above the key psychological level of $4,000.

The cryptocurrency markets have been in turmoil for weeks now, with the entire cryptocurrency market cap moving from $380 billion to $300 billion to $200 billion in a matter of weeks.

Bitcoin prices have been steadily rising since the beginning of the year, and currently, one Bitcoin is worth over $40K. The current market cap of the second-largest cryptocurrency is now over $75B, which implies that Bitcoin’s valuation has reached a top of $4T. The surge in Bitcoin price has been one of the most remarkable rallies of the year, as volatility in the cryptocurrency market has been the lowest since the start of 2018.. Read more about bitcoin price prediction and let us know what you think.

For the last several months, the cryptocurrency market has been mired in debate about whether Bitcoin (BTC) is headed for another leg down or is finally poised to break out to new highs.

Due to the rising dollar, the potential of diminishing economic stimulus, and a plethora of technical variables related to Bitcoin’s price movement, the present difficulties for the top cryptocurrency may last a little longer.

Bitcoin’s rebound is threatened by a strong dollar.

The rising US dollar, which seems to be trying a trend reversal after dropping below 90 in late May, is one of the main factors putting pressure on risk assets across the world, according to data from Delphi Digital.

3 reasons why Bitcoin price has not been able to rally back above $40K1 day chart of the DXY. TradingView is the source of this information.

The year-long rise in the 10-year US Treasury yield was halted by rising dollar strength, indicating that the economic expansions witnessed in the first half of 2021 are losing speed and that a new wave of Covid-19 infections is threatening the global economic recovery.

The Death Cross and fractals indicate that the adjustment is not yet complete.

The short-term prognosis for Bitcoin remains negative, since prior occurrences of the “Death Cross,” which first showed on BTC’s chart in late June, were followed by a nearly year-long correction phase.

3 reasons why Bitcoin price has not been able to rally back above $40KThe 50-day and 200-day moving averages have crossed in a bearish manner. Delphi Digital is the source of this information.

The 12-month moving average is being challenged as support, according to Delphi Digital analysts, and a fall below this level would indicate more negative for BTC price.

3 reasons why Bitcoin price has not been able to rally back above $40KThe price of bitcoin is now challenging the 12-month moving average. Delphi Digital is the source of this information.

The 12-month moving average has traditionally been a crucial support level for Bitcoin, so how it performs around this level may determine whether or not the current uptrend continues.

El Salvadorans go to the streets to protest the new Bitcoin legislation.

Traders should exercise care since low volumes have traditionally resulted in greater volatility, as fewer available bids may result in fast price changes.

According to Kevin Kelly, a certified financial analyst at Delphi Digital, “if and when we breach those critical levels” around $30,000, “the short-term picture becomes quite a little more bearish.”

Kelly said,

“I don’t believe we’ll see quite as much of a drawdown as we saw, say, in December 2017, early in 2018, and through the end of that year. But, given the market’s structure, I believe we may be in for some more short-term volatility and headwinds in the near term.”

The author’s thoughts and opinions are entirely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.

Bitcoin has been extremely volatile this year, with the largest one percent of the market (the top 1,000 BTC) moving up and down several thousand dollars each day. The rise and fall of Bitcoin’s price has been driven almost entirely by the speculative trading of individual investors, who have no idea what the currency is actually worth or what the future will hold.. Read more about xrp price and let us know what you think.

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Emilia James
By Emilia James

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