The market trend has shown that Bitcoin or BTC price is going back to $40,000. There were concerns regarding China’s crypto ban and the crypto tax proposal by the U.S. However, on 26th May the price of Bitcoin crossed the mark of $40,000 for the first time in five days.
Cryptocurrency reached as high as $40,855 before coming down due to the profit-making sentiment in the market.
Analysts, Ched and Korous AK have advised caution regarding the short-term rise in the Bitcoin market. As per the analysts’ caution should be taken as long as the spot market confirms a bullish breakout and raise the price.
Cheds have shown a bullish conviction pointing out that the wave has shown a strong price against the long-term bearish trend. On May 19, the cryptocurrency reached the bottom at $30,000.
One of the major signs was a decline in bitcoin exchange deposits. This trend majorly showed that no new Bitcoin trader has transferred BTC to exchange it or trade it for any other asset. Glassnode, had pointed out this downtrend in bitcoin exchange deposits.
Further, the NVT, networks value-to-transaction points out that even the downward trend of BTC is 36% higher than its previous downward trend of $30,000. This too shows a classic bullish reversal level for BTC.
Glassnode further adds that an accumulation of BTC transactions shows an uptrend. This too is a sign of bearish exhaustion as attempts are made to flip the $40,000 mark by Bitcoin.