Bitcoin's revival reviewed

For the first time since mid-May, Bitcoin is trading above $50,000, pushing the market cap of all cryptocurrencies to $2.15T, a 2%+ price increase over the past 24 hours.

Crypto 2

The recovery in the price of the largest cryptocurrency comes just two months after Bitcoin traded down to a low of $28,600 low and made a "death cross," a term used in technical analysis to describe when the 50-day moving average crosses below the 200-day moving average.

Back in July, Elon Musk, the influential CEO of Tesla Motors, said Tesla would likely start reaccepting Bitcoin again for vehicle purchases as the cryptocurrency’s energy-intensive mining industry grew more renewable. This development has been one of the factors driving Bitcoin higher in recent weeks.

Meanwhile, the inclusion of crypto in the recently agreed US infrastructure bill has been taken as an indication that Washington has given up on finding methods to block crypto and that crypto is here to stay.

Bitcoin is now edging into a band of horizontal resistance between $50,000 and $53,500, coming from a series of lows between March and May of this year and includes the 61.8% Fibonacci retracement at $51,300 from the $64,895 April high to the May $28,600 low.

A break/close above this band of resistance is required to indicate a push towards the next upside target between $59,000 and $61,000. Dips are likely to find support at the 200-day ma near $45,800, before medium term support at $40,000.

Bitcoin Daily Chart

Source Tradingview. The figures stated areas of August 23rd, 2021. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

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