Bitcoin (BTC) prices saw notable volatility on Friday, frequently breaking through $40,000 but failing to sustain that level.
At the time of this writing, the leading cryptocurrency by market cap was up 3.2 percent over the past 24 hours to trade at $40,205.
Bitcoin saw strong resistance after surpassing that level, falling below $40,000 in less than an hour, according to CoinDesk data.
Over the next few hours, the world’s most valuable cryptocurrency traded at the aforementioned price level, occasionally exceeding it and then falling below $40,000.
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More and more countries are accepting bitcoin
Bitcoin rose alongside US stocks as fresh evidence emerged of investor accumulation and increased usage by nations from Africa to Central and South America.
The cryptocurrency’s global market cap stood at $1.80 trillion, a small drop in the last 24 hours. However, the total volume of cryptocurrency trading increased by almost 14% to $95.54 billion.
Bitcoin traded flat for the second day in a row with virtually little gains. It has been trading in a tight range for the past few days, according to Edul Patel, CEO and co-founder of Mudrex.
“A similar pattern is expected to continue over the next day or two. Ethereum, the second largest cryptocurrency, is also trading similarly with a slight increase. In comparison, the majority of cryptocurrencies have been in the red over the past day, he said.
BTC Total Market Cap at $736 Billion on Daily Chart | Source: TradingView.com
Not maintaining the momentum
Bitcoin managed to sustain a brief gain in the early hours of Tuesday but then fell below the $40,000 support level in the afternoon and has since made repeated lows throughout the week.
As of Friday, the cryptocurrency’s Fear and Greed Index had fallen one point to 23, suggesting it remains in “severe fear.”
On the same day, Bitcoin had an upward correction in response to stronger market indices. However, BTC is facing more sell-offs as it aims to break the $40,000 level.
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Considerable resistance
According to John Iadeluca, founder and CEO of multi-strategy firm Banz Capital, the cryptocurrency’s recent price swings “point to significant resistance” in the $40,000-$41,500 range.
He added that the selling pressure was particularly intense “around the $40,000 to $40,500 price levels.”
Meanwhile, the Central African Republic recently became the second country in the world to legalize Bitcoin as a means of payment.
Cuba’s central bank announced the granting of licenses to virtual asset service companies. The license is offered to Cuban and foreign individuals and organizations.
Featured image from Pixabay, chart from TradingView.com
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