$50,000 at last. This price mark has been anticipated since May as many refer to it as the border between unlocking new highs or lows. The breakthrough happens within 48 hours of the previous attempt on Saturday.
A previous analysis identified a drop in trading volume as one reason why Bitcoin fell short of $50,000 during it the previous attempt. As of the time of writing, market conditions have improved as the digital gold trading volume has risen by 25% according to Coinmarketcap.
The analysis also stated that another reason why BTC failed to flip the critical resistance was because of the derivative market. As the coin slowly climbed traders trading futures slightly became bearish. The actions of these traders gradually mounted pressure on the largest crypto; slowing it down. Bitcoin came to a complete stop as the pressure intensified. As of that time, the total number of open short orders was 53% as opposed to 47% according to bybit.
This time, both the derivative market and the spot aligned as the bulls started a price rally. While some traders took profit, more than $150 million short positions were liquidated.
The new milestone comes as no surprise to Coinfomania as it was earlier predicted. In one analysis where the Fibonacci retracement was used, it stated that the current price channel, the king coin as to cross $48,974 to advance to the next course or risk a price retracement back to the previous course. As the largest crypto exits its current channel to the next, we are sure that it will get the needed boost to flip the $50,000 resistance within the next seven days.
As predicted the new 90 days high took place within the given time frame. As a new week unfolds, we can expect that bitcoin will experience price corrections and may revert to $48,000 before the continuation of the price hikes.
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