August 16, 2021, | AtoZ Markets –Bitcoin surpassed $48,000 over the weekend, corresponding to its highest level since last May. However, it trimmed some of its gains at the start of the week. The cryptocurrency market remains active.
As a key contributor, the increase in the Bitcoin price helped push the value of the entire cryptocurrency market above $2 trillion on Saturday. Something that hasn’t happened since mid-May.
The recovery of the leading cryptocurrency market, bitcoin, comes after it sold off sharply in June and July. The price fell below $30,000 after hitting a record high of more than $64,000 in April.
On Saturday, the digital currency reached $48,126.47, its highest level since May 17, according to Coindesk data. Currently, the price is trading around $46,445.84 with a daily gain of 0.23%.
Bitcoin Faces Regulatory Challenges
Bitcoin faces its biggest challenge in the regulations that are handled in China and the main countries where the mining of this cryptocurrency takes place.
Scrutiny from Chinese regulators is getting stronger, meanwhile, the U.S. Senate passed a massive infrastructure bill last week without any of the proposed amendments on crypto tax reporting that had delayed its approval.
Mr. Investor, remember that every time regulations are tightened, the price of cryptocurrencies loses strength.
On the other hand, news about bitcoin scams and scandals makes cryptocurrencies lose their credibility. During this month we have had negative news about the digital market after hackers stole $600 million in one of the largest cryptocurrency thefts in history.
However, the hackers later returned almost all of the stolen money but exposed the fragility of the system.
Let’s Make a Short Term Analysis
If we review a thirty-minute chart, we can see that the $45,695 area appears as the next support to consider. As long as the price stays below the $46,390 level on the price chart. And the next support level to consider is at $45,288.
Meanwhile, on the bullish side, if the bitcoin price recovers above $46.396, we could see the investors push the price up to $46.956 again.
Also, this week there is no big data from the United States, but the fear of what could happen in Afghanistan is something that could impact the financial markets.
In conclusion, the momentum of the bitcoin price depends on the support and confidence that investors of the cryptocurrency market continue to have to strengthen and acquire a better capitalization.
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