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Bitcoin Price Hits $50K as Crypto’s Good Form Looks Set to Continue

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by Tolu Ajiboye · 3 min read
Bitcoin Price Hits $50K as Crypto’s Good Form Looks Set to Continue
Photo: Depositphotos

Bitcoin is now the best-performing asset this year as the asset’s price breaks the $50,000 psychological resistance point.

The price of the most popular digital currency Bitcoin hit $50K for the first time in a month on October 5th. This comes amid heavy BTC price volatility and continues a triumphant return to form for the prominent token. Furthermore, the largest crypto by market cap is now officially the best-performing asset of 2021. Just five days into October, BTC has recorded a 15% gain and year-to-date returns of approximately 50%. It is 13% ahead of commodities for the year and 17% ahead of the US micro-cap companies.

On Tuesday, BTC/USD trading charts on Cointelegraph Markets Pro and TradingView showed a 5% increase. This was enough for the price level to touch the psychologically significant threshold, indicating that the bears yielded and resistance levels caved in. Throughout the year so far, Bitcoin was in a roller-coaster ride of price changes. However, the price refused to stay put even at its lowest ebb, a massive 60% retracement from highs in May. The crypto’s current $50,000 price level means that big dip is all but canceled out.

Bitcoin earlier benefitted from macro uncertainty, coupled with the mass social media outage of Whatsapp, Facebook, and Instagram.

More institutional investors are returning to stake their investments in BTC as the price looks set to rise even further. BTC is riding a three-week high of inflows. The crypto’s investment products realized $68.7 million worth of inflows between Sept. 27 and Friday. This represents a 36% increase in exposure week-over-week.

Bitcoin Price Run looks Set to Continue, However Investors Need to Look Out

Cointelegraph contributor Michaël van de Poppe believes Bitcoin’s price surge was inevitable. The way he sees it, previous price behavior suggested there was only one outcome, which is up. The contributor said the chances of a dip happening at the moment are limited. In van de Poppe’s words:

“Given the conclusion from historical price action, it seems more likely that Bitcoin will be breaking upwards towards anything around $50,000 or maybe even the recent high, and then comes down towards $49,000 before we continue to rally back up.”

However, van de Poppe stressed that the retest should not fall below a certain level for upward momentum to continue. He stated anything below $47,500 might spell trouble for the bulls.

As of press time, Bitcoin was leading major altcoins, which were slower to react. A notable exception is Dogecoin (DOGE) which recorded gains over the last 24 hours. The dog-themed token achieved gains of 10% thanks to Elon Musk posting a photo of his Shiba Inu pet puppy. BTC, by comparison, achieved a 5% growth. However, in terms of raw returns, Solana (SOL) takes the cake. The altcoin started the year at around $1.60 before hitting all-time highs of over $215.

Ether (ETH), the largest altcoin, could only manage growth of 2% within the same period and is just over $3,400.

September historically proved to be a trying month for most assets and commodities across the board. However, October is shaping up to achieve the opposite effect, with stocks predicted to rise above average returns this month.

Altcoin News, Bitcoin News, Cryptocurrency news, News
Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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