Bitcoin Breaks Out of Consolidation, Climbs Above $58,000

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3rd Party Analysis 29 Mar 2021

Bitcoin Climbs Above $58000 with Renewed Wave of Optimism

The world’s largest digital asset, bitcoin, pushed beyond its seven-day consolidation zone this morning as buyers prompted a 6.3% rise on the day. The upswing in bitcoin led to a session high of $58,200. A clean break above the recent consolidation that saw bitcoin trading sideways around $55,000.

In the previous seven days, bitcoin made a low of $50,400 and a high of $57,100 as market participants could not create enough buying momentum. The rangebound was underlined by a relatively stable market in a calm environment, lacking any major announcements or key events around the crypto space.

Monday sees renewed volatility that is leading the apex coin to the upside. As March is drawing to a close, bitcoin remains in the green for the month. Only $3,000, or less than 5% from its all-time high, the digital asset is showing a 30% gain March-to-date.

 

Bitcoin Breaks Out of Consolidation, Climbs Above 58k

 

6 Straight Months of Gains

About two weeks ago, on Mar 13, bitcoin set its all-time top of $61,700 prompted by high expectations of increasing institutional demand and corporate interest. Following the record high, bitcoin slipped as much as 18% to its March low of $50,400 when some market participants were convicted lower grounds were on the horizon. Others held more optimistic views, saying that the pullback is only temporary and before long, the crypto asset will be on its way to new highs.

The recent calm has been one of the few occasions where cryptocurrencies were trading flat. The cryptocurrency market is generally regarded as a trading space defined by extreme levels of volatility. Volatility could return as more access to bitcoin is provided by investment banks and payment gateways. Wall Street mainstays like Goldman Sachs and JPMorgan are jostling for a spot to offer bitcoin-related products, while institutional investors such as Fidelity are pushing for approval of a Bitcoin ETF product. And payment giants like Visa, Mastercard, and PayPal are set to enable bitcoin payments directly on their network this year.

The positive developments over March are expected to lead bitcoin into its sixth consecutive month of closing in positive territory.

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