The price of bitcoin stood above $ 41,000, the highest since May, after a 10-day winning streak, the longest in eight years for the largest cryptocurrency.
At the time of publication, bitcoin (BTC) was changing hands at $ 41,344, up 6.2% in the past 24 hours. CoinDesk 20’s other digital assets were also in the green, with Ether (ETH) rising 4.5% to $ 2,453 and Chain Link (LINK) jumping 13% to $ 21.72.
Although the price of bitcoin slipped past 12:00 am Coordinated Universal Time (UTC) on Saturday, it had recorded 10 consecutive daily increases from July 21 through Friday, the longest winning streak since 2013.
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Bitcoin hit an all-time high of nearly $ 65,000 in mid-April, as market euphoria peaked and the U.S. Coinbase exchange went public through direct listing. But the price fell over the next few months as China cracked down on cryptocurrency mining and trading, and regulators around the world worked to tighten industry rules. The Federal Reserve began to consider cutting its $ 120 billion in asset purchases per month – a form of extreme monetary stimulus that has been a major driver of the investment narrative that bitcoin could serve as a effective hedge against inflation and currency depreciation.
Retail investors who had crammed into bitcoin as prices skyrocketed at the start of the year rushed to exit their positions, while large institutional investors became reluctant to enter the market at high valuations. The prizes traded between $ 30,000 and $ 40,000 for about two months.
But after bitcoin briefly fell below $ 30,000 on July 20, the cryptocurrency began a steady ascent that set it on track for an 18% gain in July, the first monthly increase in three months.
“The incredible winning streak comes at a very strange time when the FUD is thick,” Mati Greenspan, founder of cryptocurrency and exchange analysis firm Quantum Economics, wrote in a newsletter on Friday. FUD is an acronym for “Fear, Uncertainty and Doubt,” a term often used by crypto traders and analysts to refer to any negative news.
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Bitcoin’s price resistance is still considered rigid in the low range of $ 40,000: “BTC is potentially limited until it breaks and closes above $ 42,000,” according to the company. Eqonex digital assets. “Trendline support has risen to $ 38,200, with $ 36,500 next support.”
But some industry analysts are now wondering aloud if the worst of the recent bitcoin bear market could be over.
“Something looks different this week,” Coinbase wrote in a market analysis Saturday. “Max scared seems to have disappeared.
Since the start of the year, bitcoin is up 43%, well outpacing the 17% gain since the start of the year in the Standard & Poor’s 500 index.