Bitcoin is set for new records with its current movement. The digital asset has now broken $50K for the first time in three months. The last time Bitcoin was back in March/April. When the bull market was at its peak. Charging the price of BTC higher than investors had anticipated. This had set the asset on a path to breaking a new all-time high, which it did.
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This new break has positioned the price of bitcoin for greater heights. Coming out of what was thought to be a bear stretch has given the asset a much-needed bounce back up. Price setup shows $50,000 is the new support level for bitcoin. The retracement upward shows a strong bullish hold on the price.
Setting Up For Another Breakout?
Bitcoin is completing the setup for a crucial signal to be triggered. The hash ribbons in the BTC chart show a setup that will most likely trigger a 250% run from this point. Waiting to trigger this will be a likely dip down below $40,000. Before a recovery that would start the price back on an even greater upward movement.
BTC price now sits above $50K | Source: BTCUSD on TradingView.com
This movement will see the price break $100,000 if all goes to plan. The indicators in the market have analysts aiming for at least $100,000 by end of the year with this movement. Holding above $50,00 remains crucial to this as the price will need a bounce point for this.
BTC price is still trading well above the 100 hourly simple moving average. With an impending resistance level near the $50,300 level. Which the price is trading above at the time of this writing.
Bitcoin Accumulation Patterns Say Upwards
Bitcoin exchange reserves have dropped recently. The number continues to trend downwards despite the high price of the asset. This indicates active accumulation patterns going on. Both institutional and private investors are consolidating their holdings to private wallets for safekeeping. And most likely long-term holding.
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Crypto asset management firms like Grayscale are holding on to their bitcoins. The firm’s last report shows that its BTC holdings at almost $30 billion in AUM (assets under management. With over 560,000 coins being held by the firm alone.
SpaceX holds its bitcoin on its balance sheet. And according to CEO Elon Musk, they have no intention to sell their holdings anytime soon. Showing that even institutional investors believe in the future of the asset.
This puts BTC in a position to keep growing to new all-time highs. A reduced supply of the coin due to accumulation means BTC’s value keeps growing. With the strong buy pressure in the market, the asset is set to hit a new all-time high. As long as current momentum holds.
Featured image from PYMNTS.com, chart from TradingView.com