Can Bitcoin Break Through $40,000 Next?


  • As the most prominent cryptocurrency, Bitcoin (BTC-USD) offers more stability than other digital assets.
  • Since Bitcoin’s price fell below its resistance level of $30,000, traders and cryptocurrency investors are concerned about what lies ahead.
  • That said, a move above $40,000 isn’t out of the question this year.
Bitcoin - Can Bitcoin Break Through $40,000 Next?

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The first and most well-known cryptocurrency is Bitcoin (BTC-USD), which has an estimated market value of roughly $530 billion, at the time of writing. 

Its widespread acceptance among significant digital assets and publicly traded instruments and its performance makes it a more appealing choice for investors seeking to safeguard their assets against potential total loss.

An overlooked yet historically dependable indicator for Bitcoin’s price has switched to positive, indicating the start of a significant bull market. 

Glassnode, a blockchain analytics company, recently reported that Bitcoin’s reserve-risk multiple has crossed above zero for the first time since October 2021.

Previous instances of this cross-over have paved the way for explosive price surges. On Monday, on-chain analyst Ali Martinez tweeted that in 2012, 2013, 2015, 2019, and 2020, this signal resulted in gains of 2,830%, 566%, 6,400%, 99%, and 487%, respectively.

BTC-USD Bitcoin  $28,780.50

What Happens Next?

Finbold has recently stated that Bitcoin’s current price has enabled over 70% of its holders to profit. Because of the current economic downturn, which has failed in multiple major financial organizations, Bitcoin has demonstrated its adaptability. 

According to some specialists, the present financial crisis may be worse even during the economic downturn of 2008.

Bitcoin’s descent below the $29,000 and now $28,000 support levels has raised concerns about the digital currency’s future path among investors and enthusiasts. 

Many factors and professional viewpoints emerge as the market seeks to understand what caused this decline, giving a few thoughts regarding Bitcoin.

The token exhibited restrained price fluctuations, moving within a narrow range of $30,200 to $30,500. However, this token has overcome the key $30,000 level in recent weeks, which suggests the next psychological threshold to be beaten is the $40,000 level.

Many experts think that if Bitcoin cannot hold the vital level of $27,700, the token will still have an opportunity between $25,300 and $25,800 before BTC can push toward $40,000. 

Recent Bitcoin News

As a sign of its relative stability, major publicly traded corporations like MicroStrategy (NASDAQ:MSTR) and Tesla (NASDAQ:TSLA) have included Bitcoin on their balance sheets. 

Although Bitcoin, like other cryptocurrencies, experienced a substantial decline of 64% in 2022, the token is in a considerably better state this year.

Bitcoin’s future appears optimistic, with expectations of continued positive movement. Inflation, a significant issue for the United States, is the primary force underlying this upward trend. In response, the Federal Reserve has intervened to find a resolution, raising interest rates on multiple occasions.

As central banks persist in printing more fiat currencies, leading to currency devaluation and inflation, cryptocurrencies are a feasible defense against inflation. Therefore, Bitcoin remains a compelling digital asset to purchase during such times.

Should You Invest in Bitcoin?

Will Bitcoin achieve the $40,000 threshold after it has come back from its losses? Predictions have been made that this is possible if a continued bull market takes form. The cryptocurrency can also pass the milestone this year with more corporate adoption of the asset class and an increase in investor interest.

Bitcoin is the one crypto I probably wish I bought in the doldrums of last year. Of course, we could get another opportunity to buy Bitcoin cheaper in the coming months, if bearish sentiment picks up. However, during bull market rallies, we’ve all seen what this token can do.

Thus, I think that given its previous performance, investors should cautiously consider investing in Bitcoin. While risks always exist, it’s really up to the individual investor and their risk profile. For me, this is among the safer bets in the crypto space right now, and one I think makes sense to consider for those with a long-term investing time horizon.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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