Bitcoin prices have been fluctuating close to $50,000 after rising above that level yesterday.
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Bitcoin prices surpassed $50,000 late last night, rising to the most since mid-May as the cryptocurrency continues to trend higher.
The world’s most prominent digital currency extended those gains today, reaching $50,495.95 around 6:14 a.m. EDT, CoinDesk figures show.
At that point, the cryptocurrency was trading at its most elevated value since May 15, additional CoinDesk data reveals.
Since then, bitcoin prices have encountered some modest volatility, falling back somewhat and trading close to $49,500 at the time of this writing.
Market observers have been watching bitcoin’s price movements closely, as it was trading between $40,000 and $50,000 since earlier this month.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Now that bitcoin has overcome the key, psychological level of $50,000, several market observers weighed in on where the digital asset may go next.
“As Bitcoin broke through the key psychological level of $50k on Sunday, this will definitely be the main level to watch as the price continues to oscillate above and below this level,” said Jake Wujastyk, chief market analyst of TrendSpider.
He offered some bullish input, stating that “if Bitcoin can hold above $50k, watch for a quick move through the ‘volume gap’ up to around $54k which is the next supply zone above using the volume by price tool.”
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“There is a pocket of low supply above which is what we call the ‘volume gap’ and prices can move up (or down) very quickly through these areas to the next level of supply.”
Wujastyk also spoke to potential downside, emphasizing that “If Bitcoin cannot hold the $50k level, watch for a move back down to the previous resistance area around $47k.”
Katie Stockton, the founder and managing partner of Fairlead Strategies, LLC, also commented, providing some technical analysis.
“Bitcoin is approaching resistance just above $51K defined by a Fibonacci retracement level,” she stated in comments provided via email. “This objective was established after its breakout earlier this month.”
“It is overbought as it comes into this level, such that it would be a natural place for bitcoin to take pause, although there are no ‘sell’ signals to highlight. Ether shares the same setup,” Stockton noted.
“If both cryptocurrencies post two decisive closes above resistance, the breakout would target their highs.”
Sean Rooney, head of research at Valkyrie Investments, also spoke to bitcoin prices potentially taking a break of sorts in their upward movement as they work through resistance close to $50,000.
“Five straight weeks of upside in the price of bitcoin most likely has put an early end to summer for many traders and institutions,” he stated.
“The swift rise could see the price of bitcoin take a breather while attempting to establish a close above $50,000.”
“This strength is not limited to bitcoin as most crypto assets have seen healthy gains in recent weeks as well and Visa even acquired an NFT, highlighting the need for a strong underlying network to host such assets,” he stated.
William Noble, the chief technical analyst of research platform Token Metrics, also weighed in, offering a differing perspective.
“$50k is not resistance. It is an intriguing even number,” he stated.
“The next real resistance zone for BTC is near 56k. I think BTC is just going to be treated and could go to 56k in two or three days – maybe less.”
“The fact that BTC does not dip after rallies is telling you a major up move is coming. A speculative heatwave is about to sweep through the entire crypto market, meme stocks, and altcoins,” predicted Noble.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.
