After a five-week protracted sell-off, crypto markets are beginning to recover, with Bitcoin experiencing its biggest price jump since its ATH in November.
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Over the last 48 hours, Bitcoin has gained by more than 7%, as major markets recover. The rally saw Bitcoin form a base at above the $46,500 level before rallying all the way to an inter-day high of $49,876.32.
The five day price chart for Bitcoin (BTC). Source: Tradingview
After hitting its interday high, at above $49.8k, Bitcoin has consolidated at the $48,700 level. Now trading at $48,691 as of this writing, Bitcoin has a market cap of $918.95 billion.
Is $50K Possible?
With Bitcoin reforming a support level near $48,750 while trading above $49,200, the crypto is showing a lot of positive signs. Additionally, Bitcoin’s current price puts it above the 76.4% Fib retracement level.
In the short term, Bitcoin is trying to break above the $49,600 level before then testing the next key resistance level at $50,000. Additionally Bitcoin looks set to retest $50k in the coming hours with sustained bullish momentum.
On the inverse, should Bitcoin fail to clear the $50,000 resistance zone, its major support will sit near $49,000 before looking towards the $48,500 support. As it currently stands, an upswing looks to be the more likely outcome for Bitcoin.
On the Flipside
- While Bitcoin recovers, a new study suggests the centralization of the crypto as it reports that 0.01% of bitcoin holders control 27% of BTC in circulation.
Why You Should Care
Bitcoin continues to show its ability to recover from major downswings, and ex-Twitter CEO, Jack Dorsey, believes it will help the asset replace the U.S. Dollar in the future.
