Bitcoin surges over 20% in a week with crucial $40,000 on the horizon

Bitcoin surges over 20% in a week with crucial $40,000 on the horizon
2 months ago
3 mins read

After a tumultuous few days in the crypto markets – and a week in which the value of Bitcoin increased by 22% – things appear much calmer on Friday.

Indeed, Bitcoin’s crypto market domination is increasing as its price rises. The most valued digital currency currently accounts for about 48% of the total market capitalization of digital currencies, its highest level in around five weeks, according to CoinMarketCap.com data.

Examining Bitcoin’s price moving average (MA) over MA 7-day, MA 25-day, and MA 99-day, it appears based on the recent uptrend that if BTC were to maintain current momentum, it can break above all three lines, which would be a potentially bullish indicator.

Moving Average (MA) MA 7 MA 25 and MA 99. Source: Binance.com chart.

Additionally, it is important to note that the recent selling volume has been very modest, suggesting that BTC may sustain the price gain and achieve the $40,000 level in days. Indeed, if Bitcoin can find baseline support above the key $40,000 mark, it could begin setting sights on higher highs.

On Twitter, crypto technical expert Josh Ragger reinforced the notion, stating, “It’s been a great week, but the question is can Bitcoin continue, breaking and closing above the $40,600 level will be important.”

$2.8 Billion outflows from exchanges

With a market worth of almost $750 billion, the world’s largest cryptocurrency is presently trading near $39,790 per coin. Recently the amount of Bitcoin leaving exchanges was at its highest since November 2020 as this week, Bitcoin reached a high of over $40,800, its highest level in more than six weeks.

Bitcoin: Exchange Net Position Change. Source: glassnode.com

Institutional investors are returning to cryptocurrencies, with about $2.8 billion in Bitcoin flowing out of crypto exchanges on Wednesday morning. 

Moreover, although Bitcoin’s price has experienced increasing volatility due to the intensified regulatory crackdown, mining revenue has sustained the purge and is gradually returning to profitability.

According to statistics supplied to Finbold by cryptocurrency trading simulator Crypto Parrot, Bitcoin mining revenue increased 179.4%, from $13.06 million to $36.49 million in the 30 days between June 27 and July 26. The total revenue for the first 30 days was $841 million.

Furthermore, as a result of the recent Bitcoin rise, crypto whale activity has skyrocketed. Three major BTC whale accounts transferred $1 billion in Bitcoin from digital exchange Coinbase yesterday.

Global crypto market

The worldwide crypto market value is now $1.57 trillion, up 1.21% from the previous day.

Global crypto market seven-day price chart. Source: CoinMarketCap.com

The overall cryptocurrency market volume over the previous 24 hours is $76.21B, a 10.27% decline. The entire volume in DeFi is presently $8.16B, accounting for 10.70% of the total 24-hour volume in the crypto market. The overall volume of all stable currencies is currently $57.44B, accounting for 75.37% of the entire 24-hour volume of the crypto market.

The world’s second-largest crypto asset by market cap, Ethereum (ETH), is now trading at $2,397, which means it’s up 4.47% in the last 24hours and 16.80% in the previous week.

Other notable coins such as Cardano (ADA), which strategists have recently predicted to become one of the “the big three” mainstream cryptos is changing hands at $1.29, up 1.72% on the day and 9.21% over the week and popular meme coin Dogecoin (DOGE) is currently at $0.2055 up 0.51% in the last 24hours and 6.71% in the last week.

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Jordan Major

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.