Why Has Surmounting $50k Become A Tough Nut To Crack For Bitcoin Bulls?
- Bitcoin currently trades at $50,396 indicating a growth of 3.88% over the last week.
- BTC briefly surpassed the $50K mark at the start of August, triggering speculation amongst investors that the asset could even rise to $60K.
- This may be a market correction as the market gears itself for another stellar run or selling sentiments is running high amongst investors.
BTC isn’t living up to the hype after it experienced a week of sideways trading that left it hovering between $48K and $50K, unable to wholly surpass the $50K benchmark. A new month has rolled by and Bitcoin is trading at $49-50K to the dismay of the bulls which leaves them scratching their head.
The Bitcoin Steam
Early August, BTC tied its bootlaces and went on a pretty impressive run on the back of positive fundamentals. The institutional investors were back and the asset was about to be adopted by small counties which spurred the asset to surpass $50K in months. Investors were confident that Bitcoin might attain the heights it reached in May but things slowly began to turn awry as Bitcoin lost its fervor after a week of sideways trading.
Bitcoin presently trades at $50,396, a far cry from its all-time high, and daily trading volumes have also slumped to $31 billion. The asset is also losing its grip on the market share that now stands at 41% and has a market capitalization of $942 billion.
Gleaning from the charts, a major resistance level was set at $51,000 and unless BTC breaks through the level, optimism for a strong run remains damp. It all hangs in the balance whether or not BTC is headed to resistance levels but some analysts believe that the asset could be in an accumulation phase.
Investors Are Left Scratching Their Heads
Investors are stumped by the lackluster performance of BTC over the last couple of weeks. Several reasons can be adduced in explanation for the doldrums faced by the asset. It can be argued that a bit of profit-taking occurred as traders trod cautiously. If this is the case, then a reaccumulation is in full swing which is a bullish signal for the market.
Buyer support is needed to stave the asset from slumping to support levels. This may be construed as a harmless price correction after a rally and could mean the start of an even stronger rally. In 48 hours, Bitcoin is set to become legal tender in El Salvador which may be the perfect trigger for a strong price rally.
Bitcoin is the largest cryptocurrency in the world with thousands of traders trading the asset class daily. The price of Bitcoin also subtly affects the price of the rest of the market as altcoins rise and fall according to the ebb and flow of Bitcoin.
Read more: https://zycrypto.com/why-has-surmounting-50k-become-a-tough-nut-to-crack-for-bitcoin-bulls/
Text source: ZyCrypto
