Bitcoin Resumes a Fresh Uptrend as Bitcoin Consolidates Above $42k
Since September 21, Bitcoin has been in a downward correction as it reached the low of $39,678. The bulls bought the dips to push the crypto to the range-bound zone. BTC’s price has been fluctuating between $40,000 and $45,000 price levels for the past week. Yesterday, the bears attempted to breach the $40,000 support as bulls bought the dips. If the bears have succeeded, the market would have declined to $37,000 low.
The bears may continue the downward push to the low of $30,000. This will create panic buying and selling as seen in previous price action. Conversely, the upside momentum will resume if buyers clear the resistance levels of $45,000 and $48,800. Bitcoin will rally to $52,750 high if the resistance levels are breached. Today, the uptrend is facing resistance at the recent high. The implication is that the market will resume a sideways move.
Crypto Is Indestructible, Says Tesla CEO Elon Musk
According to Elon Musk, the decentralized nature of cryptocurrencies may be a challenge for the Chinese government. He said: “I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government,” “They don’t like that.” He noted that the latest Chinese onslaught on crypto is likely to have something to do with the country’s “significant electricity generation issues.It is not possible to, I think, destroy crypto, but governments can slow down its advancement.” He concluded that: “Part of it may be due to electricity shortages in many parts of China. A lot of South China right now is having random power outages because the power demand is higher than expected […] Crypto mining might be playing a role in that.” Elon Musk advised regulators not to slow down cryptocurrency adoption.
Meanwhile, after a brief upward move, BTC’s price has found support above $42,000 as Bitcoin consolidates above $42k. Bitcoin is capable of rebounding above the current support to break the initial resistance at $45,000. This will pave the way for a further upward movement of crypto. Presently, the BTC price is rising after the initial retracement.
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