“This move should tell us that the worst is behind us for now,” said Matt Maley, chief market strategist at Miller Tabak + Co. Unless you reverse the move immediately, it could move quickly toward $ 50,000, where it could meet some resistance. . Still, “the stock is very bullish from a technical point of view,” he warned.
The spike comes as bipartisan groups of senators, who have been debating a cryptocurrency reporting requirement included in the $ 550 billion infrastructure bill, struck a deal, Bloomberg News reported. However, it is not yet clear whether it will be voted on.
“Washington now realizes the strength and number of different people across America who are very passionate about cryptocurrencies,” said Kristin Smith of the Blockchain Association on Bloomberg’s “QuickTake Stock” streaming show, adding that the issue has helped unify the cryptocurrency community. “The more clarity, the more certainty the industry has, the better we will be in the long run.”
Meanwhile, traders are watching bitcoin’s charts for clues about the direction it could take going forward. The currency’s 14-day Relative Strength Index (RSI) shows that it is overbought, although it broke its 200-day moving average line amid the rally. The currency could still find resistance there, as it did in May, although a sustained position above it would be considered a bullish event. Many are considering 50,000 as the next key threshold.
“Bitcoin has found its groove once again in the last week,” wrote Craig Erlam, Senior Market Analyst at OANDA Europe. “Now he’s in bullish territory again, the question is how far can he go this time.”
Having corrected more than 50% and formed strong foundations within a potentially long-term bull market, the odds are tilted in favor of bitcoin – and ether – resuming their upward trajectory, Bloomberg Intelligence’s Mike McGlone wrote in a note. The years after the halving have historically seen a big appreciation, he said, and the original cryptocurrency could hit $ 100,000.
“One question is whether supply and demand conditions have deteriorated since the beginning of 2021 and compared to bitcoin’s past,” McGlone wrote. “Our view is that fundamentals are optimistic in a maturing environment.”