Bitcoin (BTC) is seeing a new lease of life today, after it breached the $50,000 resistance level for the first time in weeks, a move that has ignited a new rally amongst the bulk of the altcoins. At the time of writing, the premier digital currency is up 5.78% to $50,085.30, its highest point in the trailing 7-day period.
Bitcoin has notably been a subject of an immense crackdown by the Chinese authorities whose regulatory crackdown measures seek to alienate all transactions involving digital currencies. The initial price slump Bitcoin, and indeed the broader digital asset industry witnessed back in May/June was stirred by the quit notice issued to Bitcoin miners in China. More recently, the People’s Bank of China (PBoC) reaffirmed its plans to prosecute all outfits offering digital currency-related activities, a move that has been criticized by many top voices in the crypto ecosystem.
These regulatory measures have not just repressed the price growth of the digital currency but have caused an unstable shift in the broader crypto market capitalization from the benchmark $2 trillion.
New Dawn for Bitcoin Price: Bullish Technical Indicators
Prior to this latest price rejuvenation, many analysts including Bloomberg’s Senior Commodity Strategist Mike McGlone have remained optimistic about the potentials of Bitcoin closing the year up north of $100,000. With sell-offs characterizing the on-chain behavior of many BTC traders, a hint towards stability in price is all that many need to regain their position with the cryptocurrency.
With the break above the $50,000 resistance point, many market investors are on track to FOMO into what may seem a breakout price trend. Key technical indicators are backing the potential breakout, like the Relative Strength Index (RSI) and MACD indicators are suggestive of a breakout account to the BTC/USD 4h chart seen below;
A successful breakout of the MACD line above the signal line as seen above will herald a new rally that may see Bitcoin’s price close the week between the $53,000 to $55,000 range. While this range is deemed ambitious, intermittent corrections cannot be ruled out judging by the erratic behavior of Bitcoin holders and their swift nature in selling off.
Rub-off on Altcoins
The Bitcoin price rejuvenation has also dragged a number of altcoins onto the positive price gain range. While Ethereum (ETH) is changing hands at $3,454.55, atop a 4.05% gain, the trio of Cardano (ADA), Binance Coin (BNB), and Solana (SOL) is up by 2.81%, 5.84%, and 1.53% respectively. With the recent growth trend, many altcoins are also gradually paring off the losses accrued in the past week.