Bitcoin hovering at US$50,000 after rising above resistance

Bitcoin has recovered after trading in a range of about US$30,000 to US$40,000 for many weeks. PHOTO: REUTERS

NEW YORK (BLOOMBERG) - Bitcoin is hovering at the key US$50,000 level as it continues to rise out of a multi-month period of weakness.

The largest cryptocurrency reached as high as US$50,376 the highest since May, as of 1.30pm Monday Hong Kong time. It was trading around US$49,000 as of 9.30pm Sunday. Its rally is overcoming a rare confluence of technical obstacles, including an April low of about US$47,000 and a Fibonacci and Ichimoku cluster between US$47,000 and US$48,000.

The 61.8 per cent Fibonacci retracement of the April to June downtrend - at US$51,000 - still looms as a potential obstacle, along with the round-number US$50,000 mark.

"The next major resistance, for now, is at the US$50,000 zone," said Konstantin Anissimov, executive director at CEX.IO crypto exchange. "Should more buyers dive in to push the price above the US$50,000 level, a frenzy may be ushered in to steer the price toward a medium-term target of US$55,000."

Bitcoin has recovered after trading in a range of about US$30,000 to US$40,000 for many weeks, after it plunged from a record near US$65,000 in mid-April. Still, it's up significantly in the past year amid institutional adoption and endorsements from big names like Paul Tudor Jones and Stan Druckenmiller.

Global crypto adoption has risen some 881 per cent in the past 12 months, according to Chainalysis. The total market value of cryptocurrencies was at US$2.17 trillion on Sunday, according to data from CoinGecko.com, up 1.1 per cent in the past 24 hours.

The overall value has been helped in the past seven days by the 18 per cent rally in Cardano and Binance Coin's 11 per cent gain, while Dogecoin is up about 9 per cent over the period and Solana 73 per cent, CoinGecko pricing showed.

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