Bitcoin price has been on an absolute tear, setting record after record over the last several months. After consolidating for weeks at a level more than double the last cycle’s peak, Bitcoin is back to making new highs and now has now traded at $50,000 for the first time in its more than decade long existence.
Within moments of touching $50,000, however, sell orders began triggering. The initial rejection could suggest that the phycological resistance level might be a tough nut to crack. With the first ever cryptocurrency reaching such a pivotal level, here’s what could happen in the days ahead.
Bitcoin Blasts To $50,000 As Epic Rally Continues
Bitcoin this morning momentarily poked above $50,000 for the first time ever. The price point is a logical place for sellers to have set for a short- or long-term price target for their investment. When price action made its way a few hundred dollars above $50,000, enough sell orders triggered to send Bitcoin dropping by $2,000 back to $48,500, which now appears to be ironclad support.
No 15 minute candles or higher could close above $50,000 on Binance | Source: BTCUSDT on TradingView.com
The reason for the increased bullish momentum despite higher prices, says Konstantin Anissimov, Executive Director at CEX.IO, is “corporate and institutional demand.” Anissimov also adds that “legal initiatives coming from American lawmakers and regional politicians” has had a positive impact on the adoption of cryptocurrencies as a whole.
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Demand isn’t only coming from those categories of investors these days, however. Celebs like musicians, actors, and athletes are showing support of the asset class, along with CEOs like Jack Dorsey and Michael Saylor. The influence of these figures as reignited retail interest in the crypto space, notably surrounding Dogecoin, and “small cap” altcoins that have boomed during the month of February thus far.
In terms of where Bitcoin might go next, the direction is more than likely up. On-chain metrics continue to lean bullish. BTC held on exchanges drops by the day, while addresses holding 1000 coins or more have gone parabolic. Supporting capital by the way of a sea of stablecoins sidelined and ready to flow into crypto, could keep the uptrend climbing for some time.
The uptrend has taken Bitcoin to over $50,000 for the first time | Source: BTCUSDT on TradingView.com
For bearish signals, there aren’t very many, however, reversals can come when it is least expected, and $50,000 could be a level that’s attractive to take profit, despite a lack of sell orders currently. The Coinbase “premium” that’s remained prominent throughout the last several months has diminished, suggesting that spot buying power could be beginning to wane.
If Bitcoin can get through $50,000 and make it to the $1 trillion market cap, a flood of capital could soon be coming.
Featured image from Deposit Photos, Charts from TradingView.com