Bitcoin rose 3.83% to $40,516 on Monday, June 14. The bulls pumped up the price to $41,064 following a tweet from Elon Musk. In addition to Musk, there has been a lot of othjer positive news for the crypto industry, while the demand for cryptocurrency remains sluggish. Investors are still reluctant to buy into leading altcoins. The dominance of bitcoin has increased to 46.0% from 41.3%, and it currently hovers around 45.1%.
At the time of writing, Bitcoin was trading at $40,252. The bears are pushing for $40k. This is the first resistance level for the bulls. It is important for the latter to gain a foothold above that psychologically significant level in order to reach an emotionally stable footing. After $40k, the next levels to be taken out are: $42,600, $44,631 (50% of the fall from $59,500 to $30,000), the $47,700-49,100 range (volume profile), and then $51,559 (50% of the fall from $64,854 to $30,000).
Given regulatory pressure, it will not be easy for the rally to resume. To propel new bullish trends, Musk needs to post daily tweets in support of the cryptocurrency and not stay fixated on green energy.
One negative factor is the strengthening of the USD in the FX market. The DXY recovered to 90.64 from 90.31. The dollar strengthened against amid the weakening of major currencies. And then the 10Y UST yield rose. Uncertainty will likely persist on the markets (equity, FX, and fixed income) until Wednesday, when Fed Chair Jerome Powell holds his press conference. By and large, investors are still a bit spooked by the recent sharp rise in inflation amid recovery of the US economy.