Bitcoin (BTC) price managed to break past the key selling zone for the first time in five days, surpassing $40,000 on May 26.
Investors expect a broader rally if Bitcoin crosses $42,000 and Ether (ETH) rises above $3k again.
Key resistance levels are $42k and $49k
Bitcoin has been recovering in recent days thanks to three big factors.
First, Tesla CEO Elon Musk and MicroStrategy CEO Michael Saylor encourage Bitcoin miners to use clean energy.
Musk and Saylor spoke with Bitcoin miners in the US about reliable energy consumption.
Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.
— Elon Musk (@elonmusk) May 24, 2021
Second, the Bitcoin futures market has been largely nullified. According to Bybt.com data, when the BTC price fell below $ 30,000, open positions in the futures market fell from $ 27 billion to $ 11 billion.
This means that the futures market is no longer overcrowded and a more sustainable rally could begin.
Thirdly, Ethereum has shown a rapid rise in recent days. This also benefited Bitcoin and altcoins as Ether suffered a larger correction than Bitcoin.
Investors say that $42,000 is an important resistance level in the short term, followed by a large selling area at $49,000.
Two key factors that Bitcoin investors should watch for in the foreseeable future are the number of BTC withdrawn from exchanges and the $42,000 level.
Bitcoin’s holding on to the level of 42 thousand dollars and the increase in the number of BTC withdrawn from exchanges prove that the confidence of investors and whales has increased.