Bitcoin was trading over 2% higher at $38,882 Wednesday, bringing cryptocurrency values above the $38,000 mark for the first time. Ether also increased by over 1% to $2,549. Shiba Inu was trading almost a percent higher at $0.000022, while Dogecoin gained 2% to $0.11. Other digital assets’ performance improved in the last 24 hours, with Polygon, Litecoin, Stellar, XRP, Uniswap, Solana, Polygon, Polkadot Terra, and Cardano all seeing gains.
BTC Price Analysis
Above the $38,200 barrier mark, the bitcoin price began a recovery wave. BTC even rose beyond the $38,500 resistance level, but it was met with stiff opposition. Closure over the $40,000 barrier level could pave the way for a long-term uptrend. In the above scenario, the price may increase to the $42,000 barrier level.
Bitcoin has been in an ascending consolidation pattern for the last two months, according to Will Clemente, Blockware lead insights analyst, indicating that the market is still unsure which direction it should go and is waiting for more signs.
As shown in the chart, the first cryptocurrency has been trading in a range-bound pattern since the beginning of February, when it was trading at around $45,000. BTC touched the local bottom of $37,000 after the retrace and then proceeded on a new run.
Why is Bitcoin still below $50000?
Fear and uncertainty are two major market drivers right now. Large Bitcoin investors, or institutions, are not putting liquidity into the market, which is crucial for swings like the ones we saw back in February, due to a lack of signals and risk-off on the crypto and financial markets.
Traders are actively withdrawing funds from centralized exchanges and holding them in private wallets, according to the Bitcoin balance on exchanges measures. A high outflow rate indicates that the crypto market’s liquidity is slowly dwindling.