In late June, Bitcoin’s price plunged to the $29,000 range but since then, its price recovery has exceeded 72%. This past Sunday saw the Bitcoin price back on the offensive tagging $50,000, a price which was last witnessed in May. This might be a signal for an impending second leg of the bull market.
The peak price witnessed at Bitstamp was at $50,270 with a 3% gain on the day. Bitcoin enjoys its position as the largest cryptocurrency with a total market capitalization of $943 billion.
In the past weeks, on-chain metrics have been suggesting the possibility of an incoming price squeeze as they expect institutions and long-term holders to bolster their BTC holdings while prices maintained their discounted rates. Since BTC traded in the low $30,000 range, this low momentum was taken over by a series of higher lows and a positive daily close signal.
#BTC is breaking out from this pennant
Daily Close like this confirms the breakout
Moreover, Daily Close like this and $BTC could see a dip into the black trendline/top of the orange box for a retest attempt
— Rekt Capital (@rektcapital) August 20, 2021
In the meantime, Bitcoin’s Fear and Greed Index, which is based on the sentiment analysis of multiple factors, took a new turn from ‘extreme fear’ to ‘extreme greed’ in a single month.
Bitcoin sentiment has flipped positive this month. Obtained from: alternative.me
This month seems to have brought good tidings to the cryptocurrency market, with Coingecko estimating the combined crypto capitalization to be approximately $2.2 trillion. This is a huge win for the crypto ecosystem since the bearish market action in July saw the crypto capitalization drop below $1.3 trillion.
The start of the month saw Bitcoin top the list of crypto’s best recoveries, but since then, many altcoins have also been on an upward trajectory. At the time of publishing this article, Solana (SOL), Cardano (ADA), and Polkadot (DOT) were all enjoying weekly double-digit gains.
According to Bloomberg, a potential obstacle might be the 61.8% Fibonacci retracement of the April to June downtrend, at $51,000 along with maintaining the $50,000 round-number mark. The executive director at CEX.IO crypto exchange, Konstantin Anissimov, claimed that “The next major resistance, for now, is at the $50,000 zone.”
Konstantin is optimistic and added that “Should more buyers dive in to push the price above the $50,000 level, a frenzy may be ushered in to steer the price toward a medium-term target of $55,000.”
Looking at the bigger picture, Bitcoin is still up despite witnessing the low trading ranges of about $30,000 to $40,000. The past year has seen BTC witness significant growth especially with institutional adoption and endorsements from big names like Stan Druckenmiller and Paul Tudor Jones.
Image courtesy of pixabay
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