Investing.com – is back in the game, probably also because it is at the highest level.
The most important cryptocurrency by market capitalization cracked the $ 50,000 mark on Thursday for the first time since August 23, but has not yet stabilized above it. The price is currently 4.54 percent higher at $ 49,793, according to data from Investing.com. At its peak, BTC had climbed to $ 50,320.
Many analysts had identified the psychologically significant mark of $ 50,000 as the key hurdle that must be cracked in order to initiate a test of the all-time high of $ 64,700 reached in mid-April.
“Psychologically, big round numbers are always important to traders and investors. The human mind is geared toward them. That’s the same reason we don’t have a speed limit of 20 mph,” said Dan Ushman, CEO of analytics firm TrendSpider.
According to Ushman, after a breakout above $ 50,000, Bitcoin could climb into the $ 60,000 area. After that, a pullback to the breakout level is expected, followed by stabilization before the cryptocurrency hits new all-time highs, he added.
Crypto analyst Will Clemente was similarly optimistic. He expects Bitcoin prices to continue rising in the coming months. The reason for this are On-chain datawho, according to him, are sending out bullish signals.
For his analysis, Clemente uses a modified version of the RSI indicator, which is based on the illiquid Bitcoin supply. The indicator measures the momentum of bitcoin accumulation by overlaying the 365-day stochastic RSI over the 30-day net change in illiquid BTC supply.
“This bitcoin supply shock wave has the greatest momentum in recent history. We will go much higher in the coming months,” he wrote in one Tweet.
Clemente’s chart shows that Bitcoin goes parabolically north every time the quantitative indicator moves from the lower to the upper end of the range. In this area, the risk of a BTC supply crisis increases. This happened in the second half of 2020, in the first half of 2019 and in the second half of 2017.
Should Bitcoin attempt a rally, the $ 50,000 mark will represent tough on-chain resistance, Clemente said. Above that, the next on-chain resistance is $ 54,000.
“There’s nothing between $ 50,000 and $ 54,000 but hot air. Over $ 60,000 there is a clear blue sky. “
In early July, when BTC was trading around $ 33,000, Clemente predicted that a possible BTC supply shock could drive prices higher. Since then, the BTC price has increased more than 40 percent. Bitcoin is currently hovering just below the $ 50,000 mark.
Plus, Clemente had previously said that this cycle might be different from any other bull market. Because long-term oriented investors, i.e. BTC hodlers who have held their tokens for at least five months, are accumulating at a rapid pace.
“Structurally, it is actually different this time. Long-term Bitcoin holders are laying the foundation.”
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