After its price plunged significantly in most part of the second quarter of this year due to selling pressure, bitcoin price has crossed the $41,000 mark as the largest digital asset traded a breakout in a fresh cryptoassets rally.
Investors sentiment were down and selling rallies had persisted with price plunged below $30,000.
Market data shows BTC continued to fighting resistance levels for longer than usual following crackdowns in China, increased demand for regulations in the United States and regulatory indifference in the United Kingdom.
Data from Coinmarketcap.com indicates that bitcoin is seeing trading at $41,200 after gaining more than 20% in the last seven trading sessions. Ethereum has also trended higher to $2,603 after recording a 20.7% uptick in a similar period.
Though, the market is still seeing stiff price resistance in the low $40,000 range, but analysts are wondering aloud if the worst of the recent bear market might have passed.
The bitcoin price was holding above $41,000, the highest since May, after a 10-day winning streak that was the longest in eight years for the largest cryptocurrency. As of press time, bitcoin was changing hands at $41,344, up 6.2% over the past 24 hours.
The highest-priced cryptoasset reached an all-time high near $65,000 in mid-April as market euphoria peaked and the US exchange Coinbase went public through a direct stock listing.
But the price tumbled over the next few months as China cracked down on cryptocurrency mining and exchanges and regulators around the world moved to tighten industry rules.
The Federal Reserve began to consider tapering its $120 billion-a-month of asset purchases – a form of extreme monetary stimulus that has been a big driver of the investment narrative that bitcoin could serve as an effective hedge against inflation and currency debasement.
Retail investors who had piled into bitcoin as prices soared early in the year rushed to exit positions, while big institutional investors grew reluctant to enter the market at lofty valuations. Prices traded in a range between $30,000 and $40,000 for about two months.
But after bitcoin briefly dipped below $30,000 on July 20, the cryptocurrency began a steady ascent that has put it on track for an 18% gain in July, the first monthly increase in three months.
On a year-to-date basis, bitcoin is up 43%, vastly outperforming the 17% year-to-date gain in the Standard & Poor’s 500 Index. Now, it appears cryptoassets will sustain its fresh foray into price uptrend.
