Bitcoin costs have continuously hit multi-month highs today, reaching their highest point since May and then fluctuating within a fairly narrow range.
The world’s largest virtual currency rose to $50,352. 00 around 3 a. m. EDT, according to figures from CoinDesk.
Later, around 10 a. m. EDT, it reached $50,374. 97, according to CoinDesk’s additional knowledge.
At this point, the cryptocurrency is trading at its highest price since May 15.
Following those more recent value movements, several analysts have provided explanations on the reasons for the rally, as well as what bitcoin values can do next.
[Editor’s note: Investing in cryptocurrencies or tokens is highly speculative and the market is largely unregulated. Anyone contemplating this will be ready to lose their entire investment. ]
“Many” bullish factors
“It’s hard to identify the cause of the rally, but unlike stocks, which are decided through fundamentals, cryptocurrencies are exclusively market-driven,” said Anthony Denier, chief executive of trading platform Webull Financial.
“There’s a lot of news, market dynamics and investor sentiment causing a rally,” he said.
“The fact that El Salvador plans to start using Bitcoin as a national currency next week is probably generating a lot of optimism among investors. But other points appear to be the broader rally in the cryptocurrency market. “
He pointed to the strength of other leading virtual currencies, especially the ada and Cardano ether, as drivers of gains in the broader crypto market.
Other analysts have cited other reasons that may contribute to bitcoin’s more recent rise, with Charlie Silver, CEO and chairman of Permission. io, noting that they have an effect on cash printing through the central bank.
“The rebound is due to the popularity that the U. S. Fed and central banks around the world are not aiming to slow down their asset acquisition programs,” he said.
“Institutions recognize that they want security in non-dollar denominated assets and Bitcoin is perfectly designed for that purpose. “
String data
Some experts have pointed to the data mined from the blockchain, which has helped paint a bullish picture of bitcoin.
“Knowledge of the chain shows that whales and long-term investors of all sizes have amassed between $46,000 and $50,000,” said Sean Rooney, director of Valkyrie Investments.
“The continuous accumulation over the more than 6 weeks has led BTC on exchanges to flirt with multi-year lows,” he noted.
Scott Melker, a crypto analyst and investor who is the host of The Wolf Of All Streets podcast, weighed in.
“Chain metrics imply that portions are moving en masse from exchanges to bloodless rooms, and that few big players are selling,” he said.
“In fact, giant wallets have been aggressively accumulating Bitcoin for 30K. The drop to 30K was exacerbated due to strong leverage in the system, so the value probably fell much more than it would have done in a vacuum,” Melker added.
“The value is now catching up with its herbal level. “
Fragile feeling
Currently, it might seem that the virtual currency is enjoying a “perfect storm” of bullish developments.
However, Denier noted that the scenario could be replaced quickly.
“Bitcoin’s return to $50,000 means that investors have once again been positive about cryptocurrencies, but its continuation will feature a strong move above $50,000. Since news and new data are the main drivers of the market, any negative news can reduce it significantly. “he said.
Technical analysis
In addition to losing caution with the many variables that would possibly have been bitcoin’s recent value movements, some market watchers have analyzed the main degrees of resistance and help of the virtual currency.
“Bitcoin is gaining traction as the U. S. consultation approaches, after 12 days of consolidation,” said Mark Warner, chief operating officer of BCB Group.
“We expect a breakthrough of $50,000, if not today, in the very short term, with $50,000 adjusted to a level. “
David Keller, a leading market strategist for StockCharts. com, presented a perspective.
“Bitcoin is used to localization and resistance to giant circular numbers,” he said.
“At this point, Bitcoin is now testing the $50,000 point and we’ve noticed a number of failed attempts to eclipse that resistance point. The good news for Bitcoin bulls is that if we get above $50,000 and keep going up, there will be very little resistance from a technical standpoint to the most sensitive $50,” Keller said.
He also talked about the degrees that the virtual currency could face if it falls.
“On the downside, we’ve been worth the 200-day moving average as well as recent lows, all in the diversity of $46,100 to $46,600,” Keller said.
“The chart remains constructive above those levels. If Bitcoin fell lower, investors may be expecting more than the past lows of around $44,000. “
Disclosure: I bitcoin, bitcoin cash, litecoin, ether and EOS.
I am a publisher and monetary with a wisdom forged in asset markets and investment concepts. Currently, I am vice president of content for the quantum money services company.
I am a publisher and monetist with a forged wisdom of asset markets and investment concepts. Author of more than 500 publications, my paintings have been published in media such as Fortune, Washington Post, CoinDesk and Investopedia. Previously, I created all the business finance education courses for a corporation of over three hundred people. at industry events around the world and delivered speeches on money literacy for Mensa and Boston Rotaract. Lately I own Bitcoin, Bitcoin Cash, Litecoin, Ether, and EOS.