Crypto enthusiasts are keen to keep the price above $ 50K. On Thursday morning, the benchmark cryptocurrency briefly dipped below $ 49K, but buyers soon came to the rescue, returning the price above $ 50,500, where sellers again appeared. Bulls and bears continue to play tug-of-war around a psychologically important level. Strong growth above could bring buyers back to cryptocurrencies, proving that earlier in February we saw consolidation and not a top in price for the coming years.
After an impressive rebound in Bitcoin and overcoming $ 50K, crypto market participants will wait for further growth and struggle for new highs above $ 58K. In case of successful overcoming of this level, the road to the establishment of a new historical maximum is opened for the reference cryptocurrency. Probably, if the resistance level is successfully overcome, we can see the testing of $ 60K.
A Glassnode study found that only 4 million BTC are in free float on the market. The third halving in the Bitcoin network, which happened in May 2020, halved the miners’ reward for the mined block from 12.5 BTC to 6.25 BTC. This further exacerbates the shortage of coins in the market, while businesses have begun to actively invest in Bitcoin, and the largest payment applications, including PayPal and Square, have added the ability for their users to buy and sell digital assets.
Market participants continue to monitor Bitcoin addresses that have been idle for a long time. Analysts concluded that every time the old coins move, it coincides with a market correction. Now 1,000 BTC have been moved, which have been motionless since 2010. Thus, in combination with what is happening in the traditional market, we may well see a new immersion in Bitcoin and the entire crypto market as a whole.
Events in the stock market will now play a leading role in influencing Bitcoin and the crypto market in general. Although the Fed is taking all steps to mitigate the situation, the yield on US 10-year bonds nevertheless went up again, and the market reacted with a decline. A little over a year ago, due to the panic around the pandemic, the fall in the stock market triggered a collapse in Bitcoin.
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