Bitcoin price regains $55,000 level, despite earlier setbacks

The price of bitcoin (BTC) has rallied by almost 10% in the span of 24 hours, lifting its overall market valuation past $1 trillion as of Wednesday.

The cryptocurrency climbed from below $50,000 to above $54,000 late Tuesday, marking a $10,000 increase since the beginning of March. BTC is now less than $4,000 away from its all-time peak, which it reached on 21 February.

The digital asset found support around the key psychological threshold of $50,000 and was changing hands at $55,000 as of this writing. The world’s top cryptocurrency in terms of market valuation, bitcoin remains in an uptrend, as defined by its 50-day, volume-weighted moving average.

On track for fifth straight daily climb

Bitcoin suffered a major setback in February as the price dropped from its record perch near $58,000 to $43,000 in just a few sessions. While notable, analysts noted at the time that a pullback of this sort could serve as a healthy combination in the longer-term as months of impressive rallies left BTC/USD overbought.

The crypto was on course for its fifth consecutive daily ascent, the longest winning streak so far for 2021, as a pullback in U.S. government-bond yields revived demand for volatile assets like tech stocks and cryptocurrencies.

Bitcoin has advanced in the last few months as a result of a blend of Wall Street institutional adoption, rising corporate interest, and retail traders flocking into the market.

Major price movements

Bitcoin’s latest climb comes as payments giant PayPal confirmed on Monday earlier reports that it is buying cryptocurrency security company Curv as part of its expansion in bitcoin and cryptocurrencies.

Other major cryptocurrencies have also witnessed significant price movements in the past days, with ethereum (ether) skyrocketing by more than 20% since the weekend.

Market observers who keep a tab on price-chart patterns said bitcoin’s upward movement to around $55,000 could position the biggest digital asset for a fresh rally toward last month’s record price past the $58,000 level, and from there potentially barrel its way to $60,000 — or even beyond.

 

Image courtesy of Karolina Grabowska/Pexels

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