The cryptocurrency market was mostly in the green on Thursday, with Bitcoin recovering all of the previous day’s losses and even surging to a 10-day high above the $42,000 mark.
Bitcoin is trading at $42,484.88, up 3% in the past seven days, according to data from Coingecko.
Ethereum followed suit with a similar local rally, but the majority of the cryptocurrency market remained in the green on a daily basis.
After yesterday’s bounce, the bulls continued to push prices higher. BTC crossed the $42,000 mark after breaking above a critical resistance point, while ETH also breached its $3,150 ceiling after temporarily dropping below $3K earlier in the week.
Suggest reading | Bitcoin rebounded above $40,000, but may struggle to maintain position
Bitcoin regained control of the major milestone of $42,000 after a week in which the price dropped to $38,000. This strong performance and stable price advance indicates the possibility of a new bullish rally in the coming days.
Strong performance of Bitcoin
The cryptocurrency has achieved another minor milestone in the past 24 hours, surpassing its all-time high in January 2021 at $42,000 for the first time since April 11.
If Bitcoin’s momentum finally reverses, market analysts may start to see the bulls pour in, possibly pushing the price towards the impending resistance level of $42,700.
Crypto total market cap at $1.92 trillion on the daily chart | Source: TradingView.com
Anticipation for ETH upgrade increases
The price of Ethereum has been extraordinarily volatile in recent weeks as anticipation for a massive upgrade of cryptocurrency software grows.
The term “merger” has been coined by investors and developers, and it is expected to happen in the coming months.
Tim Peko, an Ethereum engineer, tweeted on April 11 that the “merger” would not happen in June as previously expected.
The massive increase in Bitcoin is the result of large cryptocurrency traders collecting more cryptocurrencies at discounted prices.
In addition, significant liquidations in the futures market, especially in long positions, pushed the price of Bitcoin above $41,500.
On the other hand, this massive liquidation indicates that a large part of the trading community has lost interest in the world’s largest cryptocurrency.
Meanwhile, economists expect bitcoin to approach $45,000 if buyers overcome the initial resistance at the $42,000 peak. Once the overhead hurdle of $45,000 is overcome, a rally to the overhead resistance of $48,000 can be achieved.
Featured image from Barron’s, chart from TradingView.com