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Bitcoin price gained bullish momentum above the $38,000 resistance, now consolidating gains

Bitcoin has increased by more than 10% in value, regaining a large part of what was lost in the last few sessions of the last week after a strong sell-off due to concerns about tightening regulations on cryptocurrencies in China. Bitcoin price gained bullish momentum above the $38,000 resistance against the US dollar. BTC is currently consolidating gains and it is likely to remain supported near $37,000.

bitcoin-price-gained-bullish-momentum-above-the-38000-resistance-now-consolidating-gains

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price starts a steady rise above the $37,000 and $38,000 resistance levels

This coin is continuing to move in an uptrend over the past 24 hours. Even so, BTC is still around 40% below its all-time high in April. Since the beginning of May, the world’s largest cryptocurrency has dropped about 30%. Meanwhile, Ethereum in the past session also increased by nearly 19% to $2,491, after falling more than 8% in the previous session. ETH has also lost almost half of its peak earlier this May.

Bitcoin and other cryptocurrencies rallied in the past session as billionaire Elon Musk posted new tweets about his continued pro-cryptocurrency and his softening stance on BTC.

bitcoin-price-gained-bullish-momentum-above-the-38000-resistance-now-consolidating-gains

Source: Coin360

The strong momentum of Bitcoin entails many other Altcoins. Specifically, Binance Coin is up 32.45% to $345.4, Cardano is up 16.8% to $1.55, Dogecoin is up 18.2% to $0.365, Ripple is up 23 % to $0.986, Polkadot up 28.2% to $23.1, Bitcoin Cash up 35% to $751. Thanks to the rapid growth of the top coins, the total market capitalization this morning returned to $ 1,650 billion, or a 16.34% increase.

To start an afresh rally, the bitcoin price must break through the $39,500 and $40,000 resistance levels. The next major resistance is near the $41,500 level. Any further gains could open the door for a larger rally towards $45,000. The intermediate resistance is near the $43,200 level.

If Bitcoin fails to break above the $40,000 resistance, there is a risk of a downside correction. Initial support on the downside is near the $38,000 level.

According to data aggregator Dune Analytics, the number of transactions for Ethereum-based decentralized exchanges is hitting a record high in May, with total transactions reaching over $100 billion. Leading the way is Uniswap with a whopping $61 billion in volume this month.

The attractive opportunities in the crypto market this month have resulted in the recording of trading volume on centralized exchanges, with the highest number of bitcoins changing hands just last week. Large scale capital inflows continue unabated and if any, could now benefit from this slightly softer spot price before all the weak are eliminated and consolidate a price for this volatility.

John Willock, CEO of crypto custody provider Tritum, says so many new entrants in this bull cycle flooding the market is what is causing record numbers worldwide.

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