On Saturday, bitcoin has reached its highest level since May 20. Its price exceeded $42,000. Analysts think that BTC's rally has been triggered by the latest recalculation of bitcoin's mining difficulty. According to recent reports, the indicator jumped by 6%. This is its first upward trend since the end of spring.
Importantly, the amount of computing power used for bitcoin mining began to fall due to China's crackdown on crypto mining, as well as its trade. As a result, in May, there was a mass exodus of miners from China to more crypto-friendly regions.
Now, almost half of the Chinese BTC miners who left the country have already set up and put into operation the equipment. This led to the long-awaited recovery of the bitcoin hashrate.
Despite the positive news, BTC failed to consolidate above $42,000. On Sunday, the number one cryptocurrency began to decline. By Monday morning, it fell by 6%. So, at the time of preparing this article, bitcoin was trading at $39,728.
Experts believe that at this stage, BTC is unable to resume the bullish momentum due to mixed news. On the one hand, Elon Musk and Jack Dorsey's positive statements still provide support for BTC. On the other hand, crypto traders are concerned about the tightening regulation of the crypto market in many countries.
In particular, for several weeks now, reports about a possible tightening of the crypto legislation in the United States are weighing on virtual assets. Apart from that, the situation with the largest trading platform in the world, Binance, continues to escalate. The UK, Japan, Canada, Thailand, and regulators of other countries have already suspended Binance's work.
This is why BTC is unlikely to jump above the $45,000 mark this week amid negative news. However, even if this happens, it will be difficult for bitcoin to consolidate there as it lacks a strong support level.
In the coming days, analysts predict a small pullback of BTC. Then it may rise again. The volatility will prevail throughout the week. Yet, at the same time, BTC will continue to gradually recover after the significant losses incurred in June.
The fact that investors are determined to push BTC value up can be seen on 8 green candlesticks on the daily chart in the period from June 21 to 28. Experts believe that after breaking the threshold of $40,000, bitcoin may test new highs.
Overall, the forecasts for bitcoin are optimistic. Analysts say that it will soon resume its upward movement. A steady rise in BTC may begin in the fall amid further restoration of energy supply to mining enterprises.
