Bitcoin price breakout above $41,000 as a sign that the market could be shifting in favor of bulls

By Selena On Jun 16, 2021

Bitcoin price has broken through the 20-day moving average (near $38,000) and is attempting to rally above the key resistance of $40,000 in a sustainable way. At press time, BTC is trading around $40,000, up 22% over the past seven days.

BTC/USD 4-hour chart | Source: TradingView

The cryptocurrency market is red, Bitcoin price is firmly above $ 40,000

This morning, Bitcoin hit a price of $41,209 and is currently holding above $40,000. Accordingly, the BTC Dominance index – a measure of Bitcoin’s market capitalization as a percentage of the total cryptocurrency market capitalization – is at 44%. Currently, this indicator is still quite low, which is a bearish sign. However, it is also suggested that the recent stability is also a bullish sign.

The indicator is currently trying to break above its 20-day average of 45.75%. Breaking this level shows that investor interest in Bitcoin is growing.

According to information from Glassnode, a large volume of BTC accumulated by investors in the early stages of the price increase is still being held by them. Especially when BTC price goes back around their cost basis they still don’t sell them. This shows that long-term holders are unshaken by volatility.

Source: Glassnode

Also according to Glassnode said:

“The response of ‘the little guy’ to the evolution of #Bitcoin as an asset can be seen in the supply distribution. Entities with < 1BTC (sat stackers) almost own 5% of the supply and have accumulated in four accelerating phases.”

Source: Glassnode

In other news, following the adoption of Bitcoin as the country’s second legal tender, El Salvador’s government is discussing if companies would pay their employees in BTC.

As the tweet below, three government ministries were considering the possibility of companies’ workers receiving their wages in BTC. This was revealed by the Minister of Labor, Rolando Castro.

El Ministro de @TrabajoSV, @RolandoCastroSv aseguró que tras la aprobación del Bitcoin, se está analizando si las empresas deberán pagar el salario a sus empleos mediante la moneda virtual. El funcionario aseguró que @EconomiaSV y @HaciendaSV discuten el tema.

Vía @javierponcetv pic.twitter.com/ihAOIf5lI3

— 107.7 Fuego GMV (@1077Fuego) June 15, 2021

The crypto market is in the red as the majority slips, but there are also bright spots

While most of the altcoin market covered in red, Chiliz (CHZ) increased to 11%, Keep Network (KEEP) has increased by 5% in the last 24 hours. But, the most prominent is Shiba Inu (SHIB) – rallied 33%. And the reason for this price increase, as AZCoin News reported, is due to the U.S. Coinbase Pro has announced that it will list the tokens.

Inbound transfers for CHZ, KEEP & SHIB are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 9AM PT on Thurs 6/17, if liquidity conditions are met. https://t.co/r2L6N477Uj

— Coinbase Pro (@CoinbasePro) June 15, 2021

In another development, according to Coinmetrics’ most recent State of the Network report, the daily active addresses on Ethereum have been dropped by 11.1% in the last week. In comparison, Bitcoin’s active addresses have only dropped by 0.7% in the same time period.

Source: Coinmetrics

The report stated:

“Ethereum (ETH) usage declined over the past week, with an 11.1% drop in daily active addresses (week-over-week). Bitcoin (BTC) active addresses only dropped by 0.7%, although they dropped by 2.5% the previous week compared to a 3.3% increase for ETH. Mining revenue for both chains dropped by over 10% on the week as transaction fees continued to decline. But despite the overall drop in activity BTC’s adjusted transfer value grew by 23.8%, for a daily average of $10.1B.”

ETH’s average trading volume has hit a one-month low. According to Glassnode analysis, the average trading volume on Ethereum currently stands at $10,638.44 as visualized in the following chart.

Ethereum’s mean transaction volume hits a one month low | Source: Glassnode

Over the past 24 hours, ETH has at one point rallied to $2,600. However, there is no evidence of bullish growth in top traders’ confidence as Ether tests the $2,600 resistance. So until those indicators flip to neutral-to-bullish, traders should act with extreme care before concluding that a bull run is in place.

Let’s continue to monitor the market movements in the coming days.

You can see the Bitcoin price here.

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