Bitcoin has broken through the $ 50K level. What does this mean for the cryptocurrency market?

Yesterday Bitcoin for the first time since May of this year managed to break above the $ 50 thousand mark. Unfortunately, the main cryptocurrency was not able to gain a foothold there and is trading slightly lower this morning.

However, the very fact of the confident growth of BTC, the price of which has added more than 44 percent over the past month , speaks of the desire of buyers to see the coin even more expensive. In fact, the breaking of such an important level has changed a lot in the trading climate over these days.

We checked the actual data: this morning, BTC is just below $ 50,000. The local bottom of the rate at $ 48,776 was recorded at about 4 am. Since then, on the 15-minute chart, the asset value has been predominantly increasing.

15 minute Bitcoin chart

bitcoin chart rate

The top cryptocurrencies by market capitalization show small gains on a daily basis. At the same time, the increase in cost per week is noticeable. The record holder here was Cardano ADA, which jumped 40 percent in seven days.

What will happen to Bitcoin next?

Jason Dean, a crypto analyst at Quantum Economics, is confident that BTC’s price movement this week is a direct result of several positive factors. We are talking about » an increase in the number of active crypto wallets and the formed pattern of coin accumulation, which can lead to a sharp decrease in their supply on exchanges.»

Bitcoin blockchain trading chart

Bitcoin price increase over the past 3 months

Jason commented on what was happening in a capacious quote.

The overall narrative is incredibly bullish right now.

Recall that narrative is essentially an analogue of storytelling. In this sense, the expert uses it as a designation of conditions in the cryptocurrency market. That is, Jason confirms that the participants in the digital asset industry are now set for their further growth.

Nevertheless, the situation has changed more than noticeably in comparison with May of this year. Now Elon Musk does not criticize the purity of the Bitcoin mining niche, and many owners of ASIC miners left China, which made the BTC mining industry more decentralized. Finally, top cryptocurrency exchanges have begun introducing mandatory verification of user identities, which will further make the niche more regulated.

In addition, Dean suggested that news such as the launch of the PayPal crypto service in the UK and the expectation of the imminent entry into force of a law that would make Bitcoin a legal tender in El Salvador played a significant role in the high activity of coin buyers.

Bitcoin blockchain trading chart

Growth in the volume of open positions in Bitcoin trading over the last 3 months

Among other factors, the adoption of a new infrastructure law by US President Joe Biden should be highlighted, which introduces new tough rules for taxing owners of digital assets. In addition, the head of the US Securities and Exchange Commission called Bitcoin a purely speculative asset, allegedly not meeting the criteria for a real currency. This is negative news, but it had almost no effect on Bitcoin’s solid growth. In other words, the demand for BTC is so high that buyers ignore even such negativity, Decrypt reports.

The main «merit» of the breakthrough of the level of 50 thousand dollars is the proof that this barrier did not become a strong psychological obstacle for the majority of market players. Until the historical maximum of the value of the cryptocurrency, about 23 percent of the growth remained, and then many will begin to rely on bull run up to the line of 100 thousand dollars. Therefore, further it is worth waiting for perhaps more aggressive positions on the part of the bulls in the market.

It turned out that the American rapper under the pseudonym Basta Rimes is also watching what is happening on the cryptocurrency market. He posted a tweet in honor of Bitcoin’s rise above $ 50K and was clearly surprised.

That being said, it’s important to note that most aspiring investors are still hesitant to get in touch with the digital asset industry. This conclusion can be drawn from the graph of the popularity of the query «Bitcoin» in the Google search engine all over the world. Now it lags behind the May maximum by three times. Accordingly, there is still room for growth and attracting new investors.

google bitcoin cryptocurrencies

Interest in Bitcoin on Google

We believe that Bitcoin’s rise above $ 50K has proven to everyone that the cryptocurrency industry has not slipped into a bear market after the spring price highs. The market has enough strength to grow, so the scenario of repeating the 2013 scenario does seem likely. At least for now, there are enough buyers in the niche for a new stage of its development.

Leave a Reply

Your email address will not be published. Required fields are marked *