What does the Bitcoin recovery represent for the market?

Bitcoin has returned past the level of US$ 40,000, a value that was last traded on June 14, according to data from Trading View. With the falls suffered since May, driven mainly by Elon Musk’s statements and China’s sanctions, the asset returns to gain a new upward bias.

The first half was marked by a big fluctuation in the crypto market, in which Bitcoin reached its highest price, reaching above US$ 60 thousand in April, but then went through several falls that made it worth less than US$ 30 thousand.

According to Wilton Gomes, financial operations analyst at BlueBenx – Brazil’s first blockchain bank -, the current period is a major test of the asset to ensure its stability.

“In the macro analysis, Bitcoin is still in the consolidation phase between US$ 28 thousand and US$ 40 thousand. When he hits US$ 40,000, he still encounters resistance,” he explains.

For the asset to return to value and reach its record again, the specialist also points out the need for stability and the influence of positive factors in the market.

“We expect an evolution of the asset to occur, but for that to happen, it needs to break this barrier of US$ 40 thousand and remain above this value. If he succeeds in the next few days, we will have huge expectations that he will return to around US$ 50,000 and maybe even US$ 60,000, if positive factors occur in this interval, such as the recent statements by Tesla’s CEO, who has returned to support the asset, for example”, he completes.

Considering the first half of 2021 compared to 2020, Wilton recalls that the asset has already gone through a turbulent period right after the beginning of the pandemic last year and yet it proved resilient, proving its consolidation.

“In the first half of 2020, the BTC started with US$7,195, peaked at US$10,500, valuing +45.93%. Afterwards, it lowered at U$3,782, correcting -63.98% in relation to the high of the period and closed the semester at U$9,138, with an increase of +27.00%. In 2021, it started with US$28,923, peaked at US$64,854, valuing +124.23%, lowered at US$28,805, corrected -55.58% and closed the semester at US$35,045, with an increase of +21.17%. If you look at it, there was an evolution from one year to the next and this movement may continue the same in the coming months”, points out Gomes.

Another factor that is also essential for the analyst as proof of future appreciation and asset consolidation is the concentration on the part of institutional investors. “In the first half of 2021, the active crypto that had the most support from large investors was Bitcoin. These investors, who are also known as whales in the crypto universe, tend to keep the cryptocurrency in their portfolios for a long time”, he concludes.

Source: bluebenx