Why Breaking $50,000 Has Been A Hard Nut To Break For Bitcoin Bulls?
Bitcoin is currently trading at $50,396, up 3.88% over the past week.
BTC briefly crossed $50,000 in early August, sparking speculation among investors that the asset could climb as high as $60,000.
This could be a market correction as the market kicks off another boom or sell-off among investors rises.
BTC is failing to live up to the hype after a week of sideways trading hovering between $48,000 and $50,000 and unable to completely outperform the $50,000 benchmark. A new month has passed and Bitcoin is trading at $49-50,000, embarrassing the bulls and scratching their heads.
bitcoin steam
In early August, BTC tied the boot race and performed quite impressively with positive fundamentals. Assets crossed the $50,000 mark in a matter of months as institutional investors returned and the asset was about to be adopted in the small county. Investors were confident that Bitcoin could reach the heights it reached in May, but things began to slowly turn around as Bitcoin lost enthusiasm a week later.
Bitcoin is currently trading at $50,396, which is far from its all-time high, and daily trading volume has also plummeted to $31 billion. The asset is also losing market share, which currently stands at 41% and a market cap of $942 billion.
The main resistance level gathered on the chart was set at $51,000, and there is still little optimism for a strong upside as long as BTC does not break through this level. Whether BTC is heading towards resistance levels or not will all depend on balance, but some analysts believe the asset may be in an accumulation phase.
Investors are scratching their heads.
Investors have been puzzled by BTC's poor performance over the past few weeks. Several reasons can be deduced from the description of the downturn the asset is facing. It can be argued that traders have made a small profit by walking cautiously. In this case, the re-accumulation is in full swing, which is a bullish signal for the market.
Buyer support is needed to keep the asset from falling to support levels. This could be interpreted as a harmless price correction after the rally and could mark the start of a stronger rally. In 48 hours, Bitcoin is set to become a legal bid in El Salvador, which could be the perfect trigger for a strong price rise.
Bitcoin is the largest cryptocurrency in the world, with thousands of traders trading its asset class every day. The price of Bitcoin subtly affects the price of the rest of the market as altcoins fluctuate with Bitcoin's ebb and flow.