The cryptocurrency market recovered some of the losses from the past few days on February 25 when Bitcoin (BTC) briefly fell back above the $ 50,000 level and various altcoins have seen double-digit price gains.
Data from Cointelegraph Markets and TradingView shows that Bitcoin bounced off a low of $ 45,200 at the end of Feb. 24 before rising 15% to $ 52,000 in morning trading.
While the rebound in the cryptocurrency market is a welcome sight for bullish investors, Bitcoin price still encounters resistance above $ 50,000, and this level has yet to be confirmed as support.
Economists have also begun to worry about rising Treasury yields., which are usually a sign of weakness for the economy and can have a big impact on many markets.
Catalysts for a $ 100,000 Bitcoin
Now that Bitcoin has entered a mild corrective phase, analysts are debating whether the digital asset will be able to exceed $ 100,000 by the end of 2021.
According Giles coghlan, HYCM’s chief currency analyst, the answer to that question “depends on who you ask,” and crypto advocates are “very optimistic” that 2021 “will be the year that Bitcoin takes center stage”while traditionalists remain skeptical. on the “risky and unpredictable market”.
Coghlan sees the momentum behind recent gains being driven by “general public hype” after pro-crypto tweets from Elon Musk and Mark Cuban.But now the enthusiasm “seems to be waning” as Bitcoin struggles to hold $ 50,000.
Due to the volatile nature of BTC, it’s “too early to tell if this will be the new benchmark support level”.
“I would not be surprised if the price slowly drops to $ 40,000 in the next few weeks, which appears to be a more realistic support level. A drop below this is also plausible based on Bitcoin’s performance over the course of 2020. “
The analyst sees the acceptance and endorsement of Bitcoin by “big institutional funds and regulators” as the next big driver for new highs, which would also end the dominance of the cryptocurrency market by retail traders and could lead to a “less volatile” market as a result.
Announcements and Protocol Updates Drive Altcoin Prices
Several large and mid-cap altcoins saw how their prices skyrocketed on Thursday as recent announcements and new integrations boosted trading volumes.
Cardano’s ADA is the best performing coin in the top 10, is currently up 10.4% and is trading at $ 1.15, while Fantom (FTM) continues to benefit from its recent cross-chain integration with Ethereum and is up 31.79% to a price of $ 0.7755.
Other notable artists include Enjin Coin (ENJ), which is currently up 34% and is trading at $ 0.6221. Polygon’s MATIC is also up 27.74% and is trading at $ 0.2023.
The overall cryptocurrency market capitalization is now $ 1.533 trillion, and Bitcoin’s dominance rate is 61.3%.