On Sunday evening, bitcoin recovered to the $50,000 level, a significant psychological price level as the crypto market continues to recover from its spring meltdown and consequent summer slump. The world’s largest cryptocurrency by market capitalization briefly surpassed the $50,000 mark to hit a local high of $50,311, then dropping down 0.7% at the time of writing.
As is the case with all round figures with a large number of zeros, many traders view $50,000 as a psychological barometer of success. Breaching it opens the door to further tidy sums, such as $55,000 or $60,000.
The last time Bitcoin was at these levels was after Tesla CEO Elon Musk said that his firm will no longer take Bitcoin as payment for its automobiles owing to environmental concerns.This revelation, along with other bearish developments, sent Bitcoin plummeting in the days and weeks that followed.
Since Tesla had purchased $1.5 billion worth of Bitcoin just three months before, institutional and retail investors were startled by Musk’s 180-degree flip. The damage was aggravated the following week when the Chinese government threatened to tighten down on Bitcoin mining and trading—and then did so.
The broader crypto market tends to follow Bitcoin’s price fluctuations, and all major cryptocurrencies began to fall in response to the negative news.
What now?
Bitcoin’s ascent to $50,000 prompted many to believe that the price would only rise from here, but Decentrader experts cautioned that the weak volume observed during the current rise might be a warning that the price would need to regroup at lower support levels.
The possibility of a short-term downturn was also raised by Crypto_ED_NL, a pseudonymous cryptocurrency expert who now expects the price to fall below $50,000. He highlighted the range between $49,100 and $49,300 as a favourable zone for traders to consider opening long positions based on the chart presented.
A more positive assessment of the recent price action was provided by pseudonymous Twitter user ‘RookieXBT,’ who predicted that the price of BTC will hit $75,000 before the end of the year.
Furthermore, in a follow-up tweet, he added, “In the time Bitcoin spends between $50,000 and $60,000, I think Ethereum breaks it’s all-time high after lagging during the initial up move.”
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