It seems like cryptocurrencies resumed the larger uptrend after hesitating after the May crash that lasted until mid-July. The price action also confirms the bullish momentum in the crypto market as most of the major cryptocurrencies are all pushing up.
Cryptos made a major breakthrough today, with Bitcoin breaking over the 3-month range between $ 29,000 and $ 44,100. It also broke the 200 SMA (purple) on the daily chart, which also offered resistance on retraces on the upside and held BTC / USD down for more than 2 months.
The war over the crypto market continues, but the crypto market no longer cares, which suggests that the side against cryptos is unlikely to have much success. The banking institution is trying to destroy this new market while the other side is trying to increase the use of cryptocurrencies. The crypto market collapsed in May after China cracked down on cryptocurrencies, and bitcoin mining in particular.
Other countries have also taken action against the crypto market, banning crypto exchanges like Binance and making it difficult for companies to continue as usual. In the US, the White House is trying to increase tax compliance for cryptocurrency brokers, which they justify as a means of paying infrastructure bills. The deal was heavily criticized by cryptocurrency investors, who argued that it would give the Biden administration more powers to virtually paralyze the growing crypto market.
On the other hand, other countries are adopting cryptocurrencies as a means of payment. Ukraine is trying to pass a new cryptocurrency law that will allow payments in cryptocurrencies like bitcoin, even though cryptos are not recognized as legal tender. So Ukraine is joining a growing number of countries adopting cryptos.
Ethereum crossed the $ 3,000 resistance this week
Ethereum also broke the resistance zone, which extends from $ 2,900 to $ 3,000. ETH / USD has formed three consecutive bullish weekly candlesticks indicating strong bullish momentum. Now Ethereum is heading for the previous highs, which don’t seem too far away if the bullish momentum continues like this in the coming weeks.
If Bitcoin (BTC) breaks that resistance, $ 50,000 is imminent
Bitcoins (BTC) has managed to hit a fresh two-month high of $ 44,101 after breaking the key resistance of $ 40,000. The top cryptocurrency has managed to turn its longstanding resistance into a vital on-chain support and now appears to be the next to hit $ 45,000. The top cryptocurrency is currently trading at $ 43,716, up 7.13% and looks well positioned to test the $ 50,000 resistance soon.
The next major resistance for BTC is at $ 45,000, and if it continues its bullish momentum the key resistance would turn into support and $ 50,000 would be imminent. The top cryptocurrency has broken out of the almost three-month price slump, which is dominated by bearish sentiment. It registered 10 consecutive daily green candles for the first time in 4 years.
Bitcoin is currently breaking out of a two-month range for the second time this month, and a clear break would certainly ease its way to $ 50,000.
During the height of the market sell-off, though Bitcoin looked fragile as it fell below $ 30,000 a couple of times, many mainstream pundits dubbed it the end of bull season. However, Bitcoin proponents consistently claimed that the top cryptocurrency would eventually bounce back from the bearish trend, and current price trends prove them right.
A significant chunk of Bitcoin continues to move away from exchanges
As bitcoin prices continue to rise, the amount of bitcoin supply held on the exchanges has steadily declined. A significant part of BTC held on stock exchanges was postponed again last week. The movement of bitcoin supply away from the exchanges is viewed as bullish as traders often move their holdings to Hodl in anticipation of a price spike.
The top cryptocurrency’s market cap also rose to over $ 800 billion, and so did the cryptocurrency as a whole Market capitalization rose to over $ 1.75 trillion during the recent price surge.
Bitcoin price shows an inverse relationship to gold
The dynamics of Bitcoin price versus gold had an inverse relationship, with BTC price rising for the most part during that week while gold price trailing a downtrend. BTC and gold are often pitted against each other in the race for store of value, and BTC is currently clearly winning in terms of return on investment (ROI).
Invest in Crypto Mining BBCStaticMiner.