Bitcoin prices are re-bonding to $40K, whereas Ethereum is nearing $3K. The cryptocurrency markets are rapidly recovering. The Bitcoin price has surpassed $40,000 on May 26th, breaking above a critical sell area for the first time in 5 days.
Rise above $42,000
Traders are expecting a broader rally to come and a bullish market structure to form. This can happen if Bitcoin continues to rise above $42,000 and Ether reclaims $3,000.
Key resistance levels
Elon Musk, the CEO of Tesla, and Michael Saylor, the CEO of MicroStrategy, firstly started encouraging Bitcoin miners to use Clean Energy. They have gone further since speaking with the Bitcoin miners in the United States about reliable energy consumption.
Secondly, the Bitcoin futures market reset to a large extent. According to bybt.com data, when BTC crashed below $30,000, the futures market open interest dropped from $27 billion to $11 billion. This states that the futures market is not overcrowded, raising the probability of a more sustainable and gradual rally.
Thirdly, Ethereum has been rapidly rising over the past few days, which also benefits Bitcoin and Altcoins because ETH saw a more profound connection than BTC. Several significant cryptocurrencies are rebounding as a whole is improving the sentiment around Bitcoin.
However, this is leading to the gradual recovery of the Crypto market. The traders are saying that $42,000 is a significant short-term resistance area, and after that, $49,000 is a macro cell area.