Bitcoin Bounces Back Past $40,000, But May Struggle To Maintain Position

Bitcoin managed to recover from the $38K price zone and is now trading over the $40K mark, indicating that the bulls have made a rally against the bears. Though the largest cryptocurrency in terms of market capitalization has lost 10% in the last two weeks, BTC is gradually recovering. Bitcoin is currently trading at $41,431, according to price data website CoinGecko, after falling to roughly $38,779 on Monday. Bitcoin increased about 7% from the current month’s lows. The majority of the token’s profits come from large traders amassing more crypto at lower prices. Additionally, the token’s erratic movements resulted in significant liquidations in the futures market, particularly in long holdings. Bitcoin Recovers – For Now However, the massive liquidations revealed another factor affecting BTC positioning — a sizable fraction of traders looked to be abandoning the world’s largest cryptocurrency. Along with Bitcoin’s rebound, the broader cryptocurrency market has increased by 3.3 percent during the last 24 hours. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is currently trading at $3,097, following a Tuesday low of $2,897. Crypto total market cap at $1.88 trillion on the daily chart | Source: TradingView.com Based on data by CoinMarketCap, Bitcoin’s trading volume increased 19.60 percent in the last 24 hours, followed by a 1.04 percent decline in its ...