The Bitcoin (BTC) price was back on the offensive late Sunday, touching $50,000 for the first time since May and signaling that the bull market was fast approaching its second leg.
The BTC price peaked at $50,270.00 on Bitstamp, having gained 3% on the day, according to Cointelegraph Markets Pro. The largest cryptocurrency has a total market capitalization of $943 billion.
On-chain metrics recently suggested that a supply squeeze may be imminent, with long-term holders and institutions bolstering their BTC holdings while prices remained at a discount. A series of higher lows and a positive daily close signal have carried momentum for BTC since trading in the low $30,000 range.
Meanwhile, the Bitcoin Fear & Greed Index, which is based on a multifactorial sentiment analysis, has flipped from “extreme fear” to “extreme greed” in less than a month.
The cryptocurrency market appears to have turned a corner this month, with the combined crypto capitalization currently hovering at roughly $2.2 trillion, according to Coingecko. By contrast, the combined crypto caplitazation dropped below $1.3 trillion during the depths of July's bearish market action.
Bitcoin (BTC) is back at $50,000 as a new week gets underway with a bang.
After a strong weekend, Bitcoin finally crossed the long-awaited $50,000 mark overnight on Sunday.
Along with a firm sense of déjà vu, traders are naturally curious as to what will happen next — and crucially whether Bitcoin has bitten off more than it can chew with its latest price surge.
With the United States Federal Reserve’s annual Jackson Hole summit lined up this week, macro triggers could combine with internal sources of contention to spark a hectic week for cryptocurrency markets.
Cointelegraph takes a look at five BTC price factors worth considering in the coming days.
$50,000 Bitcoin: What could go wrong?
There was no shortage of concern about Bitcoin failing to crack $50,000 this weekend. Everything from low volumes to a bearish Wyckoff distribution event was visible on social media from those unconvinced of market strength.
In the event, however, Bitcoin clipped and held the psychologically significant price level in classic fashion.
“If btc can break out from here. People over trading will lose their Btc and hodlers will win,” popular trader Pentoshi summarized in one of their various tweets Sunday.
“I said this one other time before it did a relentless 6x. Know when to trade and when not to trade. All you have to do is do nothing. My strat is to do nothing when it happens.”
Pentoshi channeled various references to Q4 2020, hinting at similarities between market composition now and the start of the main phase of the latest Bitcoin bull run.
This “springboard” was also apparent when BTC/USD hit $50,000 for the first time in February — but it took time for the level to become firm support and provide the foundation for a trip to current all-time highs of $64,500.
As such, should BTC/USD see a fresh pullback, it will likely be fleeting, Pentoshi argues.
“Probably won’t be much looking back if any,” he added.
“Right now is all about accumulation. When markup begins there is only vertical accumulation.”
This Daily Dose was brought to you by Cointelegraph.