Bitcoin has been consolidating between the $30,000 and $40,000 range, but Bitcoin needs to exceed $40,000 for bulls to build trust.
BTC was trading at $36,890 during intraday trading, according to CoinMarketCap.
Chris Weston, head of research at Melbourne-based brokerage Pepperstone Financial Pty, believes Bitcoin should be traded above the current $40,000 threshold for bulls to feel they are out of vulnerability.
He explained :
“Virtual currency needs to hit $39,460 and hit the top of the recent range to really attract, but we’ll need to see a break here so the bulls feel we’re out of this period of vulnerability.”
Bitcoin gained momentum from the $32,000 lows recorded recently, after El Salvador became the first nation to accept Bitcoin as legal tender to boost the country’s economy and help with financial inclusion.
Crowd interest in BTC peaked at 3 weeks
According to metrics provider Santiment, the spike Bitcoin experienced above $36,000 caused crowd interest in the leading cryptocurrency to peak in 3 weeks. However, interest in Ethereum (ETH) remained suppressed.
Bitcoin needs to exceed $40,000 for bulls to build trust
The recent market crash witnessed in cryptospace has pushed Bitcoin’s price from highs of $64.8K to lows of $30,000 and negatively affected miners as their profit margins were considerably reduced. As a result, its net flows turned negative.
Meanwhile, SkyBridge Capital founder Anthony Scaramucci noted that investors must accept Bitcoin’s volatility because it is still in its early stages of adoption.
The former White House communications director also pointed out that the BTC was obeying Metcalfe’s law, which states that the value of a network is proportional to the square of its users.
Therefore, it remains to be seen whether Bitcoin will exceed $40k for a bullish impulse to be activated.