If bitcoin can stay above $50,000, it would mark an end to the recent pullback, an analyst said.
Bitcoin has once more crossed above $50,000, possibly marking an end to the recent price pullback and a revival of the broader uptrend.
The top cryptocurrency by market value was trading near $51,600 at press time, up 6.3% on the day. It’s still down from an all-time-high price above $58,000, though it’s climbed from a low of $43,000 reached last week, according to CoinDesk 20 data.
“The correction looks to have ended with a move above $50,000,” John Ng Pangilinan, managing partner at Singapore-based Signum Capital, told CoinDesk. Securing a foothold above that level is key to the resumption of the broader uptrend and a move toward new record highs, he said.
Bitcoin’s latest break above the psychological hurdle looks sustainable because the futures market is in a far healthier state than in mid-February when excess bullish leverage was seen. Further, institutional demand remains strong, as highlighted by the recent outflows from cryptocurrency exchange Coinbase Pro.
“This time it’s at $50K with default funding, no overcrowded futures market, spot market parity with futures and high Coinbase premium, coupled with large outflows and institutional interest,” market analyst Joseph Young tweeted.
The comments were echoed by Matthew Dibb, COO and co-founder of Stack Funds, who said the overall trend remains bullish, adding that a UTC close above $52,100 would pave the way for a move toward new lifetime highs above $58,332.
However, a new record high could remain elusive if the U.S. bond yields resume their recent rally, pushing stock markets lower, he said.
“From a fundamental perspective, we are still at the mercy of macro markets. Knee-jerk reactions in the bond market and volatile equities may continue to prove ‘risk-off’ correlations with bitcoin,” Dibb told CoinDesk. “We remain extremely bullish but would not be surprised to see further volatility in the short term.”
Bitcoin and stocks faced selling pressure last week as the U.S. 10-year bond yield surged to 12-month highs above 1.6% and investors priced in prospects of an early unwinding of monetary stimulus by the Federal Reserve.