Bitcoin Nears $40,000 Mark Amid Bullish Trend and Market Volatility
Bitcoin on the Verge of Breaking into the $40k Range?
Bitcoin, the king currency of cryptocurrencies, has recently reached the $39,000 mark. With a current funding rate of 0.01%, Bitcoin is on the verge of breaking the $40,000 threshold. In the last 48 hours, the price has been inching closer to this mark.
Bitcoin Approaching $40,000
In recent weeks, Bitcoin has experienced some fluctuations, with the price alternating between rises and falls. Nevertheless, Bitcoin has been able to consistently hold in the $37,000 range. Recent discussions have all revolved around the possible movement of Bitcoin towards the $40,000 mark. A closer look at the daily timeframe shows that BTC has been getting closer to this threshold over the last three days. On December 1st, Bitcoin closed with a value increase of 2.6% at around $37,200. On December 2nd, it rose another 2.0% and closed the trading day at over $39,000.
Strong Bullish Trend for Bitcoin
The analysis of Bitcoin’s Relative Strength Index (RSI) points to a strong bullish trend. The RSI is almost approaching the oversold zone. Moreover, the short-term moving average (yellow line) continues to provide support in the $35,000 range.
More Active Bitcoin Addresses Expected
Despite the recent price increase, the number of active addresses has remained the same. On December 2nd, there were around 5.3 million active addresses. The previous day also saw nearly 3.5 million active addresses. This suggests that the Bitcoin price increase has not yet led to an increase in active addresses.
Derivatives Traders Betting on BTC
The rise in Bitcoin’s price has elicited notable reactions from derivatives traders. An examination of the funding rate on Coinglass showed sustained positivity, associated with a price increase. At the end of the trading day on December 2nd, the funding rate was at about 0.008%. At the time of this analysis, however, the funding rate had risen to about 0.01%. This means that more and more traders are betting on rising Bitcoin prices.
Final Thoughts
Current trends suggest that Bitcoin is on the verge of breaking the $40,000 threshold. Should this happen, it could lead to increased activity and trading volume. As always in the world of cryptocurrencies, however, caution is advised, as the market is highly volatile and things can change quickly.
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Sources: TradingView, Santiment, Coinglass
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