Bitcoin price is up above $51,000, a positive milestone after last month’s crypto sell-off
Bitcoin price is up about 22% over the past week and has decoupled from slumping global equities. This is considered a positive milestone after last month’s crypto sell-off. At press time, BTC is trading around $51,058.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price is prompting traders to extend their short-term target to $56,000
Fresh momentum in October pushed BTC above $50,000 throughout the day after bulls took control of the market and put BTC’s price near $51,900. After a brief period of consolidation, the bulls continue to rally, and many analysts are watching to see if BTC price holds the $50,000 level for support.
Since hitting $40,885 on September 29, BTC has surged 26.8% and stoked traders’ hopes for a year-end close above $100,000, which has become an actual target price at the end of 2021.
According to crypto analyst Gaah from CryptoQuant, short-term resumed bulls in control and attacking.
“Stablecoin Reserves have been draining, and it may indicate that the Bulls are using stable fiat. As price holds retracements, it will be essential to see these Reserves rising, even looking for new ATH. The more liquidity that occurs in the trend, the more impulse it will have in the short term”, he stated. “The Red means has been breached, indicating the beginning of a coordinated attack. It can be expected from here on new attacks on Bears, liquidating leveraged and seeking at least the Yellow mean.”
Source: CryptoQuant
According to the Fear and Greed Index, sentiment on bitcoin significantly improved over the past week, signaling a shift away from market panic. Technical indicators are also showing improving short-term momentum, which is consistent with the rising bullish sentiment.
When Bitcoin price rose within $500 from the $50,000, this move toward the key psychological resistance helped pull the Crypto Fear & Greed Index out of the “Fear” zone and into the “Neutral’ state on October 4. And now, this indicator has changed to “Greed,” signaling that the market sentiment has changed, and the uptrend is also heading towards new and better levels. The investors are less fearful during the latest price recovery.
Crypto Fear & Greed Index as of October 6 | Source: Alternative.me
Also, according to David Lifchitz, managing partner and chief investment officer at ExoAlpha, despite the move higher, BTC is not out of the market yet even though technical indicators are all pointing towards an up move, we were fooled by the spike on October 1st, just three days ago.
“At this point, there are two possibilities: either bull get back in the game, push BTC (the barometer…) above $55,000, and we can expect a reach toward the $64,000 all-time high soon after, or they remain skeptical about the move from $44,000 to $48,000 in just 2 minutes and may not have enough firepower to go past $53,000-$55,000, at which point BTC could just go back in the middle of its 5-month-old $40,000-$50,000 range”, he stated.
There is news on the market’s sidelines like blockchain projects that have raised or received quite a bit of funding. As AZCoin News reported, THORSwap, a cross-chain decentralized exchange (DEX) built on THORChain, raised $3.75 million in a private token sale led by IDEO CoLab Ventures.
Also, Axie’s creator, Vietnam-based Sky Mavis, announced it had raised a $152 million Series B round at a $3 billion valuation, led by venture capital firm Andreessen Horowitz. The company said it plans to use the funds to build out its distribution platform to support outside developers in creating blockchain-enabled games and expand its team and scaling infrastructure. AXS was trading at approximately $130, down from a high of $154 earlier this week.
The latest surge in BTC appeared to lead a broad rally in cryptocurrency prices. ETH was up 3%, while Polygon’s MATIC rose 4.8%, and BNB coin gained 4%.
“Ethereum is up to $3,480, the coin’s highest price in 16 days. Notably, miner balances have continued to skyrocket. 532.75k $ETH is the largest balance held by miners since July 13, 2016. The value of these coins is $1.85B, easily an all-time high”, Santiment stated.
Source: Santiment
The overall cryptocurrency market cap now stands at $2.215 trillion, and Bitcoin Dominance is 43.5%.
Read more:
- Bitcoin May Get More Usage For Payments In Brazil But Not Becoming Legal Tender
- Bitcoin Price Toward $50,000 For The First Time Since Early September