The price of Bitcoin finally broke through the $50,000 price level after dipping over the last few days because of increased crackdowns by Beijing on the digital sector and El Savador’s bumpy start to incorporating the digital coin as its legal tender. However, Fed Chair Jerome Powell’s statement that the Fed is not likely to ban stable coins caused a spur of optimism among investors. Furthermore, Elon Musk’s enigmatic tweet on Tuesday also supported the bullish sentiment.
On Wednesday, Bitcoin price broke above the resistance of 55K for the first time in more than two months and this encouraged the bulls that the crypto king may be getting ready to move higher. So far, the month of October has been good for Bitcoin and the price is up more than 15% since the end of September. Usually, Bitcoin price moves higher in the last quarter of year and if the upward momentum continues the way we have seen so far this month, it is highly likely that the Bitcoin price may break the all time high this month. Having said that the continued rejection of the $40000 handle is promising for buyers and the hope of a further upside rally.
Overall, the notorious digital asset is up nearly 76% over the last twelve months and has nearly risen 17% in October. Investors should expect the rally to continue as long as there isn’t a big correction in equity markets, which could potentially have a spillover effect on crypto markets as well.
Furthermore, investors should keep in mind that cryptocurrencies and crypto-related products are continuing to rise in demand as the digital sector carries on to gain traction and popularity. One of the largest banks, US Bank, has also entered the playing field, quoting that the phenomenon is too hard to ignore. The bank has started offering crypto custody services for Bitcoin and will evaluate if it is feasible for the bank to provide custody services for other digital coins as well going forward.
More immediate moves might see bitcoin drop into the $52000-530000 range where minor support is located. Should we hold here we could envision a test of $60000 mark. If this gets broken new all time highs come into play with many analyst predictions of $80000-$100000 comes into focus.
SOURCES: FXSTREET
