This is the new bottom of bitcoin that shows its increase in value

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This is the new bottom of bitcoin that shows its increase in value

Bitcoin (BTC) price broke above $41,600, reflecting an increase in investor buying strength. In this way, it leaves behind the fall it had to touch USD 38,600 ten days ago.

Bitcoin has managed to hold steady above $40,000 for a week in a row. This indicates that investors are not willing to sell below that figure. Likewise, he points out that the strength of demand and holding is being stronger than that of supply.

This would mean that investors perceive that at lower prices, BTC would be undervalued. Therefore, they do not sell for less and buyers accept this new minimum price to acquire it, showing consensus in the market that the current minimum price is an acceptable base value to trade the cryptocurrency.

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In this way, the bitcoin floor has been positioned higher and higher since the end of January. Namely, their price declines are smaller than three months ago, which could signal a long-term uptrend as seen in the following graph.

Bitcoin price.
The minimum price of BTC has been rising for three months. Source: Binance.

Bitcoin price floor is getting higher since bottoming out in January

After the all-time high that bitcoin reached above $67,800 in November 2021, its price has dropped to bottom at $35,000 in January 2022. Since then, its value has risen with smaller declines in the $37,000 area, after the start of Russia’s war against Ukraine, and recently just under $40,000.

CriptoNoticias reported that specialists speculate that the recent fall of BTC in April It was because of the tax increase. in the United States, which also affected the stock markets.

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So does Tom Dunleavy, the research analyst at cryptocurrency market intelligence firm Messari, who specified that Americans were probably selling their bitcoins to pay their taxes before their due date.

Faced with this situation, other investors may have decided to sell for fear of a further drop or motivated by a personal matter. As such, Dunleavy clarified: “In financial markets and especially cryptocurrencies, it is often very difficult to pinpoint one very specific thing for a sell-off. It’s usually a confluence of circumstances.”

Beyond the reasons that motivated investors to dump the cryptocurrency, it can be seen that they have not been willing to sell for less than $40,000. That’s why the fall stopped there. Thus, the current floor bitcoin shows a accumulation of perceived value by investors within the last three months. An idea that correlates with the fundamental vision of enthusiasts who see the cryptocurrency becoming more valuable over time, despite the fact that its price does not always show it.

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