Bitcoin Zeros in on Historical Top as Momentum Picks Up
Bitcoin is on its way to retake the historical top of $58,300. This week’s rally has pushed the price higher by nearly 18%. From the low point of $49,300 on Monday to slightly above $58,000 early Friday. Today’s peak arrived during the early hours of the Asian trading session when investors kept the buying momentum going until the daily trend exhausted at $58,100. The price has now eased off from the intraday high. Hovering near $56,800 at the time of writing. If Bitcoin manages to close the day above $57,600, the price will be in an upward trend sustained over the past six days.
Since reaching an all-time high above $58,300 at the end of February, the number one digital asset entered a correction. This correction lasted a little over a week before bulls bought the dip sending the price higher by over 35% in a matter of a couple of weeks. As a result, the all-time high is challenged by renewed buying optimism, underpinned by strong institutional support and corporate interest.
The pick-up in momentum could also be partially attributed to the approved $1.9tn US stimulus package. The fiscal package is now in preparation to be sent out to the nation, bolstering optimism in the financial markets. As the pandemic-relief bill is now a law, the White House signals support for risk assets, such as traditional stocks, as well as crypto-assets, which are now more open in terms of new liquidity.
Increased Adoption Drives All-Time-Highs
Bitcoin is up more than 1000% for the last 12 months. Driven primarily by interest from big financial institutions. Advocates promote that the coin’s intrinsic characteristics offer a store of value similar to gold. Additionally, according to crypto supporters, Bitcoin can act as a hedge against inflation and a weak US dollar. Opponents are quick to point to the asset’s wild swings and unpredictable price behavior. These potential risk factors could be interpreted as weaknesses.
Critics also argue that the Bitcoin rally is a product of highly speculative trading behavior that has formed a giant bubble on track to burst like it did in 2017.
Crypto participants, however, reassure that the involvement of large financial institutions, hedge funds, and companies will prevent that fate.
With experts confident that the rally has more, 2021 could be the year to go crypto. Trade Bitcoin with TradeOr and benefit from modern technology, next-level charting, quick and secure deposits, and 0% commission.