Bitcoin hits nearly 3-month high as crypto tries to break through next hurdle at $ 51,000, analyst says
Bitcoin was trading near highs not seen since mid-May Monday, as the world’s largest crypto and the rest of the digital asset complex staged a rally from recent lows.
At last check bitcoin BTCUSD,
changed hands at $ 46,037, up 3.4% on CoinDesk and significantly higher since its nadir below $ 30,000 hit in late July.
According to Dow Jones Market Data, bitcoin has been trading near its highest levels since May 15, when it changed hands to $ 48,254.76. Bitcoin has risen by over 10% in the past five days and increased by 32% in the past month. Asset prices are still well below the mid-April peak, at around $ 65,000.
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Meanwhile, Ether ETHUSD,
on the Ethereum blockchain, changed hands at $ 3,124.37, up 1.5%, its highest level since May 18, based on 5 p.m. ET close levels , on CoinDesk.
Katie Stockton, technical strategist at Fairlead Strategies, told MarketWatch that bitcoin has broken through three resistance levels in the past three weeks: including the 50-day moving average; a separate metric known as the cloud model, which helps define the support, resistance and momentum of an asset, and “(as of today) the [moving average]. ”
“The minor breakouts reflect positive short-term momentum and improved mid-term momentum after the successful test of July support near $ 30,000. The next hurdle on the chart is just above $ 51,000, ”she wrote.
Bitcoin has been under pressure for months due to close scrutiny from regulators around the world. China has cracked down on the crypto trade and banned bitcoin mining, forcing the region’s mining complex, one of the largest in the world, to move into new territories more conducive to digital bitcoin mining in the world. using powerful computers capable of solving complex mathematical problems. problems.
Meanwhile, lawmakers on Capitol Hill were considering an amendment to the bipartisan infrastructure bill to clarify that miners and crypto service providers would not be required to follow the new crypto broker tax reporting rules.
However, it seems unlikely that an amendment will be included in a final draft of the infrastructure legislation.
Yet not everyone believes that bitcoin and other assets, like the DOGEUSD dogecoin,
came out of bearish wood.
Yves Lamoureux, chairman of macroeconomic research firm Lamoureux & Co., told MarketWatch that the crash in commodities like GC00 gold,
and SI00 silver,
in Monday’s Asian trade highlighted the fragility of markets like bitcoin, which are relatively thinly traded compared to more traditional assets.
” This last [fear of missing out, or FOMO] does not help find market prices, ”he said.
Bitcoin is up nearly 58% so far in 2021, Ether is up 322%, while dogecoin, the popular meme asset, has grown over 5,000% in the year to date. day. By comparison, gold is down 8.3%; while the Dow Jones Industrial Average DJIA,
is up nearly 15% so far in 2021, the S&P 500 SPX Index,
is up around 18% and the Nasdaq Composite Index COMP,
gained more than 15%.
Crypto-linked funds were also trading higher on Monday. Crypto index fund provider Bitwise Asset Management’s Bitwise Crypto Industry Innovators ETF BITQ,
was up 5%, the Grayscale Bitcoin Trust GBTC,
one of the largest bitcoin asset managers, was trading up more than 6%, while bitcoin miner Marathon Digital Holdings Inc. MARA,
and the adjacent crypto-company MicroStrategy Inc. MSTR,
one of the biggest holders of bitcoin, were all trading sharply higher.
