There may be an end to the recent pullback if Bitcoin stays above $50K. Analysts are predicting a new high above $58,000.
Bitcoin has once again exceeded $50K, putting an end to the current price pullback. The growth may also mark the end of a revival of the comprehensive uptrend.
Bitcoin began this month positively after jumping more than 80% to $49,000. John Ng Pangilinan, managing director at Singapore-based Signum capital, said:
“The correction looks to have ended with a move above $50,000”
BTC initially pushed above $50,000 early Tuesday, recovering from last week’s 21% sell-off. Kyle Davis, the co-founder of Three Arrows Capital, explains that he expects offerings from the largest investment banks to grow as they adopt cryptocurrencies. Some of these offerings include bitcoin research, trading, custody, and prime brokerage.
At press time, the king coin was trading over $51,000 at market value. This shows that BTC is up 5% in the last 24 hours.
Bitcoin’s recent increase seems sustainable, seeing as the futures market is now in a healthy state, unlike in mid-February. At the time, BTC experienced excess bullish leverage. Also, as revealed by Coinbase Pro’s recent outflows, institutional demand is still strong.
Is Bitcoin at $50K End of Pullbacks?
On the other hand, the new record high may be fleeting if the US bond yields proceed with its recent rally. Matthew Dibb, COO, and co-founder of Stack Funds explained that the US bond rally focused on pushing stock market prices lower. He also mentioned that a close above $52,100 could make room for a move toward new highs above $58,332.
Reiterating Dibb, market analyst Joseph Young tweeted that BTC is at $50K with default funding. There was no overcrowded futures market, high Coinbase premium, or spot market parity with futures. There were also no large outflows and institutional interest, thereby indicating that this increase may be sustainable.
Dibb also told Coindesk that even though the market remains extremely bullish, he would not be surprised to notice more volatility in the short term. He explained further that the currency is still at the mercy of macro markets from a fundamental perspective. Reflex reactions in the bond markets and resilient equities may continue to demonstrate ‘risk off’ correlations with Bitcoin. He noted:
“We remain extremely bullish but would not be surprised to see further volatility in the short term.”
A currency strategist at LMAX Digital, Joel Kruger, while speaking with Coindesk, said that he believes there is still a chance for weakness ahead. He warned against people’s expectations that the bottom is in. In the interview, Kruger attributed this to BTC’s short-term risk as related to a downturn in the US and global equities.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
