The cryptocurrency market is in the middle of a recovery phase following Monday's downslide. The total market value has crossed the $1 trillion mark, again confirming the bulls' return.

Bitcoin is moving fast towards $40,000 after testing $30,000 earlier this week. The largest smart contract token is up 9% to exchange hands at $1,160. However, Ripple is still lagging, especially with its immediate upside capped under $0.3. Perhaps the overhead pressure comes after Grayscale dissolves the sponsored XRP Trust.

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Polkadot is among the most prominent daily gainers after bringing down the resistance at $10 and brushing shoulders with $12. Other altcoins such as Chainlink, THETA, Uniswap, Zcash and SushiSwap are recording double-digit gains.

Bitcoin gradually ascends to $40,000

Bitcoin is catching momentum following the retesting of support at $32,000. As reported on Wednesday, it was unlikely the lower support at $30,000 would be rested. Simultaneously, the leg up to $40,000 was only possible if BTC/USD closed the day above $36,000.

The largest cryptocurrency has extended its price action above $38,000. The break past the 50 Simple Moving Average must have increased investors' confidence in the uptrend. A daily close above $38,000 may see BTC explode to $40,000 and perhaps reach new record highs.

BTC/USD 4-hour chart

On the flip side, the Bitcoin bullish narrative will be thrown out the window if a correction occurs under $38,000. The 50 SMA might absorb some of the selling pressure, but some of the most formidable support levels sit at $36,000, $34,000 and $32,000. The level at $30,000 is home to BTC's primary support.

Ethereum prepares for a 17% upswing

Ethereum has just broken above the x-axis of an ascending triangle. This move is occurring after Ether took back the support at $1,100. The plunge to $900 also allowed more investors to join the bullish market.