The newsflow in recent days has been surprisingly positive, with cryptocurrencies making strong gains across the board. Bitcoin, the number one by market capitalization, made a particularly strong comeback. Now, the price is trading just before a crucial resistance. These marks are currently in the focus of investors.
Until mid-July, the mood on the crypto market was gloomy. Many cryptocurrencies had been on a downward slide for weeks and there was no end in sight. Bitcoin (BTC) even sank below the important psychological 30,000 dollar mark in the meantime. Last-minute rescue came from the crypto conference "The B-Word", where well-known entrepreneurs and investors such as Elon Musk, Cathie Wood and Jack Dorsey reaffirmed their enthusiasm for cryptocurrencies. Bitcoin then starts a powerful rebound from July 21.
The current price increase of 37 percent in just six trading days is the largest this year. As a result of the current rally, the price is now trading above the important psychological $40,000 mark again. Things are getting exciting now, as the price is close to the massive resistance at 41,322 dollars. Profit-taking may occur here in the short term.
However, the overriding picture has brightened again significantly and so the profit-taking should only be short-lived. As soon as the price has mastered the resistance, a new buy signal is triggered and additional positive momentum is created.
Sentiment has turned 180 degrees in a week and many cryptocurrencies like bitcoin are recovering strongly. Although the price is still in its week-long sideways range, this should be left upwards in the coming weeks.