Bitcoin (BTC) starts a new week in a new price range above $51,000 — has it beaten crucial resistance?
After the weekend turned from sideways to surge for BTC price action, bulls are now targeting $54,000 and higher.
Given how difficult it has been to hold $50,000 for any length of time over the past month — let alone beat out the sellers at $51,000 and higher — anything could happen in the coming hours and days.
With everything to play for, Cointelegraph takes a look at five factors worth considering when deciding on where Bitcoin may go next.
Have $51,000 sellers been beaten?
It’s been variously referred to as “crucial” and the “final hurdle” by analysts — now, Bitcoin has passed $51,000.
The move was a long time coming — multiple attempts to crack $50,000, a psychological barrier in itself, all ultimately failed to flip it to support. The volume of sellers above the range proved simply too much for bulls, who previously suffered a lack of momentum to sustain higher levels.
The night from Sunday to Monday changed the paradigm, however, and BTC/USD finally passed $51,000 for the first time since mid-May. The question now is “can it hold?”
For some, the answer is obvious.
In the event, BTC/USD hit highs of just under $52,000 before cooling and consolidating near that peak.
This places the pair at the very top of the resistance wall, with only $52,000 remaining as a meaningful hurdle before much easier conditions for bulls return.
“There’s a vol gap here which is just air. Thus price could move quickly,” an excited Pentoshi added, analyzing the current spot price setup.
“Price is also above the PoC. Buyers in control.”
Pentoshi previously argued that $50,000 in fact had little sway as a technical landmark. But $48,700, he said on Saturday, was important to hold as a daily close in order to secure further upside.
El Salvador adopts Bitcoin
A less technical but equally symbolic move is due for Bitcoin this week — it will become legal tender of a sovereign state for the first time in history.
On Tuesday, El Salvador will officially begin using Bitcoin as its national currency alongside the United States dollar.
Despite heavy warnings and even demands to abort the move from the likes of the International Monetary Fund and others, the country’s president, Nayib Bukele, has held firm. Now, Bitcoin and its adoption will begin a major new experiment.
“As El Salvador takes a massive technological jump into the financial future, before any other country, there are bound to be mishaps,” Alex Gladstein, chief strategy officer at the Human Rights Foundation, said in a series of tweets about the topic.
Gladstein cited political moves by Bukele’s government among other problems, which make Bitcoin adoption an interesting chapter in the country’s history. On a personal basis, however, the benefits for any Salvadoran remain obvious.
“For Salvadorans who are open-minded and willing to put in work to understand Bitcoin it could yield enormous fruits,” he added.
Meanwhile, a movement currently gathering steam on social media involves Brazil, where the Bitcoin community plans to each buy $30 of BTC in support of the law.
El Salavdor’s government passed a motion to create a $150-million Bitcoin fund last week.
Bitcoin on track to seal fourth straight difficulty gain
Bitcoin price action continues to be supported by fundamentals tha refuse to give up the pace of gains.
In just under two days’ time, the next automated readjustment will add an estimated 2.5% to Bitcoin’s difficulty, marking a fourth consecutive increase.
As Cointelegraph reported last week, this will be the…
Read More: cointelegraph.com