Bitcoin (CRYPTO: BTC) crossed the key $40,000 mark late night Tuesday, advancing for the eighth straight day.
What Happened: The apex cryptocurrency traded 9.2% higher at $40,087.89 over 24 hours at press time. BTC is trading 34% higher over a week. Since the year, began BTC has risen about 35.76%.
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The rise in BTC comes as the global cryptocurrency market cap rose 6.9% to $1.55 trillion.
Bitcoin has been testing the $40,000 level for the past couple of days, crossing the mark twice in the hour preceeding press time.
Why It Matters: Analysts expect the upwards momentum in major cryptocurrencies and altcoins to continue. Pankaj Balani, CEO of Delta Exchange expects BTC to test the “upper end of the $30,000-$42,000 trading range,” as per CoinDesk.
As per Balani, $45,000 looks well in reach for Bitcoin in coming days, but a decisive break above $50,000 “will take some doing.”
This week’s short squeeze saw $750 million worth of shorts liquidated — which is the highest recorded to date in BTC, as per Arcane Research.
Earlier in the week, CryptoQuant analyst Sashimi Nakamoto noted that if BTC keeps to the lower range of 30K, shorts will begin to squeeze as the cryptocurrency moves to the middle point of the range, which will likely accelerate in the coming days and weeks.
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