For the First Time in Three Months, Bitcoin Trades Above $50K Psychological Resistance

Bitcoin has re-entered the $50,000 price range for the first time in over three months.

The world's biggest cryptocurrency by market capitalization has gained 2.5 percent in the last 24 hours and is now trading for approximately $50,050, its highest level since May 15. Bitcoin currently has a year-to-date return of 71.4 percent.

“This isn't the first time we've reached this famous milestone, but considering recent industry advances, $50,000 feels more than justifiable at this moment,” said Mati Greenspan, CEO of Quantum Economics.

Though price action stays above a key indication used to measure the momentum of a particular trend, daily trading volume has remained relatively stable and has continued to decrease from days before.

Toby Chapple, head of trading at digital asset company Zerocap, told CoinDesk through Telegram, "The market continues to linger above the 200-day moving average with bulls still in play." “In recent days, relative outperformance by cardano, ether, polkadot, uniswap, and other cryptocurrencies has offered a supportive bid for BTCUSD.”

In the form of long interest from investors, Bitocin is flashing indications of medium-term price. Though, as Chapple pointed out, futures price is not where it was earlier this year.

Larger global concerns, such as the forthcoming US Federal Reserve meetings at the end of August and a Federal Open Market Committee meeting in September, may prompt the market to examine any potential actions on global liquidity, according to Chapple.

“Any Fed move would be bad for price movement and may cause contagion from a risk-off event in conventional markets,” says the author.

Other cryptos in the top 20 by market capitalization rose in response to bitcoin's rise, with cardano, litecoin, and uniswap gaining the most, ranging from 2% to 12%.

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