Bitcoin (BTC) is staying above $50,000 and it is creating a strong support zone around this psychological price level. The virtual currency moved from $30,000 to $50,000 in just a few weeks and it is now showing that it can stay above $50,000 without letting sellers break that level.
Bitcoin Builds Support Above $50,000
Bitcoin continues to attract the attention of investors and companies from all over the world as it keeps above $50,000 for several days now. This shows that Bitcoin is now in a consolidation phase that could last several days before a new movement takes place in the market.
There have been many catalysts in the past that pushed Bitcoin to new highs. Most of these catalysts were companies that announced their Bitcoin investments. During the last few months, we have seen this trend stop, however, there have also been some situations that showed that companies are still interested in purchasing digital assets.
These recent weeks have been very positive not only for Bitcoin but also for many other digital assets. Cardano (ADA), Solana (SOL) or even Polkadot (DOT) and Litecoin (LTC) have experienced large price increases, attracting new investors. These virtual currencies were able to move even more than Bitcoin in recent weeks, showing that there is still a large number of investors that believe in the bull run.
In the future, things could continue in the same way. However, it would be very important for Bitcoin to sustain its current levels and continue moving higher before the end of this year. Although there have been several analysts saying that BTC could move to $100,000, the path towards that level could be plagued with challenges.
The next level to pay close attention to is around $57,000 per coin. Once we hit that level, we could either retrace or continue higher and claim that position as support. As we have seen, it took some days for BTC to claim the $50,000 (which is still being tested as we talk).
Furthermore, we should understand the role that other virtual currencies could play as well. Ethereum (ETH) and Cardano (ADA) were those virtual currencies that showed strength in recent months. If that continues, we could also see new ATHs in these two blockchain networks.
Right now, Bitcoin is being traded at close to $49,900 and it could find support close to that level.