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Summary
- Bitcoin is likely to achieve a record winning streak this year, after its prices surged nearly 30 per cent in the past one week.
- The crypto token soared over seven per cent to reclaim its US$ 40,000-mark early on Wednesday, July 28.
- Bitcoin could face resistance at US$ 45,000 apiece, and it is likely to take support at US$ 37,000 apiece.
Bitcoin (BTC) is likely to set its longest winning streak of 2021, after the largest crypto token traded in the green for the past seven straight days.
BTC witnessed a seven per cent rise to a price of over US$ 40,000 apiece on Wednesday, July 28 (6:30AM UTC). This brings the token’s surge to almost 30 per cent for the last one week.
Bitcoin is still well below its lifetime record of nearly US$ 65,000 apiece, representing a 39 per cent loss since mid-April. But the recent rally shows that bulls have returned in the crypto market, with a five per cent gain in the past 24-hours.
The crypto token is likely to register gains for eight straight days. The current surge has come on the back of massive support from Wall Street-based institutional investors and public companies such as Ark Investment Management LLC, Square Inc. (SQ:US, NYSE:SQ), etc. Speculations around the chances of Amazon Inc (AMZN:NASDAQ:AMZN) allowing payments in crypto also fuelled the coin’s growth.
In its latest second-quarter earnings report, Tesla Inc. (TSLA:US, NASDAQ:TSLA) confirmed that the electric vehicle (EV) maker continues to hold its Bitcoin tokens.
BTC liquidated short sellers on Monday, July 26, after making a double-digit surge. For now, these positive sentiments have diminished concerns around Bitcoin, including the use of virtual currency in ransomware and environmental issues.
The energy consumed by crypto mining firms using equipment like graphics processing units (GPUs) and application-specific integrated circuit (ASIC) could face more strict regulatory actions from the US and European countries.
Let us look at the current support and resistance levels of BTC.
Bitcoin (BTC)
Bitcoin’s value has soared over 37 per cent this year. The virtual token has registered a 263 per cent rise in the past one year, led by the rising crypto acceptance.
Crypto investors seem to be focusing on Bitcoin as Ethereum (ETH), Cardano (ADA), Stellar (XLM), and other altcoins are behind as compared to the BTC rally.
The BTC price trajectory is eyeing a mark of US$ 45,000 apiece, and it is taking support at nearly US$ 37,000 apiece.
Bitcoin’s one-year price performance against moving average multiple. (Source: EODHD/Others)
Based on the evaluation of BTC’s price moving pattern, it appears to be still trailing by 11 per cent against its long-term simple moving average. It could face a second resistance at US$ 50,000 apiece once it breaches its 200-day moving average. The third resistance is likely to be around US$ 57,000 apiece.
The blockchain ecosystem, which includes decentralized finance projects, Non-fungible tokens (NFTs) and autonomous crypto platforms, also adds significant weight to Bitcoin’s recovery.
