Bitcoin has reportedly risen above its downturn as the crypto surged past $40,000 to currently trade at $40,200.
This meant a 28.85% bullish return from Sunday’s low of $31,200.
According to reports, traders expect a broader rally to come and a bullish market structure to form if Bitcoin continues to rise above $42,000 and Ether (ETH) reclaims $3,000.
The recovery in the price of Bitcoin and the altcoin market has been triggered by three major factors:
Firstly, Tesla CEO Elon Musk and MicroStrategy CEO Michael Saylor have been encouraging Bitcoin miners to use cleaner energy. Musk and Saylor have gone further to speak with Bitcoin miners in the United States about reliable energy consumption.
Secondly, the Bitcoin futures market reset to a large extent.
According to the data from Bybt.com, when BTC crashed to the $30,000 trading range, the futures market open interest dropped from $27 billion to $11 billion.
This means that the futures market is not overcrowded, fostering a more sustainable and gradual rally.
Thirdly, Ethereum has been rising rapidly over the past few days, pushing towards the $3,000 mark, which also benefits Bitcoin and altcoins because ETHER saw a deeper correction than BTC.
Major cryptocurrencies rebounding as a whole is improving the sentiment around Bitcoin, leading to the gradual recovery of the cryptocurrency market.
In the short term, traders say that $42,000 is the important short-term resistance area and after that, $49,000 is the macro sell area.
