After languishing for six weeks below the $40K mark, bitcoin hit the price level on Monday, although not all relative data indicate that a bullish rally is in the making.
The largest cryptocurrency by market capitalization recorded a price of $40,370 per unit, marking a solid day of gains that saw the asset back to a major price milestone.
The asset, which is now considered a legal tender in El Salvador, even peaked at $40,400, based on figures by Cointelegraph Markets Pro and Trading View.
The climb, though, was short-lived as according to tracking from CoinGecko, at press time, bitcoin is trading at $36,538 and has been down by more than 4% in the past 24 hours.
Experts fire away caution
The movement of bitcoin’s price resulted in “understandable excitement” from investors who have been waiting for quite some time now for the asset’s upside to resume.
But Michael van de Poppe, a contributor at CoinTelegraph, fired away some words of caution against being overly bullish at current levels.
“Bitcoin is still showing strength, although sentiment is getting euphoric again while approaching the range resistance. The trend has shifted, as the market has created a higher high,” he said.
The contributor also added that he thinks bitcoin investors are still looking at an HL at $34.5–36K in the coming weeks unless the $41K mark is surpassed.
Not the only one
Van de Poppe is not the only one that is calling for a pragmatic appraisal of the bitcoin market at large.
Data analytics firm Glassnode, in its weekly newsletter “The Week On-chain,” emphasized the need for on-chain activity to keep up with price performance in order to sustain the market.
An analyst from the firm wrote, “Overall, on-chain activity remains somewhat bearish and continues to be quiet.”
Image courtesy of Cointelegraph News/YouTube