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Bitcoin breaks above $50,000 as upward momentum continues By


© Reuters.

By Samuel Indyk – The price of exceeded $50,000 for The first time since 7thSeptember was the date that Bitcoin became legally tender in El Salvador.

The world’s largest cryptocurrency had dropped to around $47,600 in early trade before rising to a high around $50,300.

Bitcoin ETF

There is speculation about Bitcoin ETFs lingering in background. But there’s hope that the US Securities and Exchange Commission, (SEC), will soon approve futures-based ETFs.

Eric Balchunas (Bloomberg ETF Analyst) says there’s a 75% probability that Bitcoin futures ETFs will be approved by Bloomberg ETFs this month.

A Bitcoin ETF approval is considered another step toward cryptocurrencies being a major financial asset. Because they are derivative-based, a futures-based ETF will be approved first. This makes them more difficult to regulate.

Meanwhile, crypto investment products and funds recorded inflows for a seventh consecutive week last week, according to data from CoinShares, signalling that institutional interest in Bitcoin and other digital assets isn’t slowing down.

Technical View

Bitcoin has traded above $50,000 and is currently testing the trendline resistance at its current level, $50,300.

Next, upside traders will focus on September’s high at $52,900. Analysts are suggesting that Bitcoin could test the $65,000 mark within weeks if it moves or closes higher than this level.

Bitcoin may need to make small adjustments if it fails to maintain gains over $50,000 The 18ThAs support, September high at $48,800 might be possible.

You can then watch for the following levels: the $46,800 50-day average and $45,000 200-day average.

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