Here is why cryptocurrencies are rising now

Cryptocurrency market has picked up momentum to push higher across the board and multiple cryptos have made a double-digit percentage point gains  on the back of (ahem, Tesla boss Elon Musk) what appears to be a hype-fuelled trading.

The overall market-wide upward traction follows Elon Musk’s comeback on Twitter to throw his weight behind bitcoin which has since kept up above the US $40,000 mark. Elsewhere, many of the major altcoins have spiked double-digit percentage points in step with their big brother.

As of press time, Bitcoin (BTC) is changing virtual hands at US $40,430, Ether (ETH) at US $2,586, ripple (XRP) at US $0.88, Binance Coin (BNB) US $373, cardano (ADA) at US $1.57, Dogecoin (DOGE) at US $0.32, ChainLink (Link) at US $25.29, UniSwap (UNI) at US $24.09, Polkadot (DOT) at US $25.30 and Stellar (XML) at US $0.34.

The electric-car maker’s chief executive officer had tweeted that the electric car company would resume accepting bitcoin as a form of payment once certain renewable-energy criteria are met. This appears to be providing the much-needed lift for the bitcoin that was smashed during April and May when the Tesla inventor had cast doubt on the virtual coins by backtracking on his promise that customers could buy his cars with the cryptocurrency.

Besides Musk’s tweets, the recent Taproot upgrade approved by the majority of bitcoin developers at the weekend is to provide the ability for smart contracts to take place on the bitcoin blockchain, in a way similar to contracts available on the Ethereum network. The upgrade will take full effect this November.

Although Musk’s tweet, as always, has huge and instant impact on the price of Bitcoin, and in this case holding higher in the short term.

However, the current rebound still needs to find fundamental support and sustain to indicate a reversal of the overall downtrend prevailing over the past weeks.

The current territory is the highest level since late May as similar surges previously were sold off sharply and eventually bulls lost the strength to push higher.

Succeeding to hold constructively above the current levels could validate bullish potential and precipitate an impulsive surge to challenge the yearly highs.

On the flip side, there is strong support around US $36,000 and below US34,000 levels.

Risk Warning: Cryptocurrency is a unregulated virtual notoriously volatile asset with a high level of risk.  Any news, opinions, research, data, or other information contained within this website is provided for news reporting purposes as general market commentary and does not constitute investment or trading advice.