Bitcoin (BTC) price witnessed a noticeable fluctuation on Friday, repeatedly breaking the $40,000 mark but failing to sustain that level.
As of this writing, the top cryptocurrency by market capitalization has increased by 3.2% in the past 24 hours, trading at $40,205.
Bitcoin saw heavy resistance after crossing that limit, dropping below $40,000 in less than an hour, according to CoinDesk data.
Over the next several hours, the most valuable cryptocurrency in the world traded at the previously mentioned price level, sometimes topping it and then dropping below $40,000.
Suggest reading | what’s in a name? Ethereum domain name sales surge 2,300%
More countries are adopting Bitcoin
Bitcoin rose along with US stocks as new evidence emerged of a backlog of investors and increased use by countries ranging from Africa to Central and South America.
The global cryptocurrency market cap has reached $1.80 trillion, down slightly from the last 24 hours. However, the total volume of cryptocurrency trading increased by almost 14% to reach $95.54 billion.
Bitcoin traded flat for the second day in a row, with almost a slight increase. It’s been trading in a tight range over the past few days, according to Mudrex CEO and co-founder Edul Patel.
A similar pattern is expected to continue over the next day or two. Ethereum, the second largest cryptocurrency, is trading similarly, with a slight increase. In comparison, the majority of cryptocurrencies have been in the red over the past day.
BTC total market cap at $736 billion on the daily chart | Source: TradingView.com
Failing to maintain the momentum
Bitcoin managed to sustain short gains during the early hours of Tuesday, but then fell below the $40,000 support level in the afternoon, and since then hit repeated lows throughout the week.
By Friday, the cryptocurrency fear and greed index had dropped one point to 23, indicating that it was still in “extreme fear.”
On the same day, Bitcoin experienced an upward correction in response to stronger market indicators. However, BTC is facing more selling as it strives to breach the $40,000 mark.
Recent volatility in cryptocurrency prices is pointing to “significant resistance” in the $40,000 to $41,500 range, according to John Idiluca, founder and CEO of multi-strategy firm Banz Capital.
He added that selling pressure was particularly intense “around the $40,000 to $40,500 price levels.”
Meanwhile, the Central African Republic recently became the second country in the world to legalize bitcoin as a form of payment.
The Cuban Central Bank has announced the issuance of licenses to virtual asset service companies. The license will be granted to Cuban and foreign persons and organizations.
Featured image from Pixabay, chart from TradingView.com