Bitcoin Breaks Through $51,000 Resistance Zone; Will it Convert to Support?
Flagship cryptocurrency, Bitcoin has surmounted the resistance level of $51k after over three months, suggesting a displacement of the bears. The bearish trend that saw the price of the top crypto asset plunge to $30k began in May. According to reports, this was about the same time that Tesla had announced that it would discontinue its Bitcoin-EV initiative where users could exchange Bitcoin for electric vehicles produced by the firm.
At the time, Tesla’s CEO, Elon Musk had picked up the gauntlet to reveal the bearish development via his Twitter account. This marked the start of the negative turning point for not only the price of Bitcoin, but the entire crypto market. Citing environmental concerns, Tesla backed off from its March decision that was widely and positively received. Despite its unexpected u-turn, Tesla still retains some Bitcoin on its balance sheet, Elon Musk revealed in subsequent weeks.
Bitcoin Bottoms At $28k
Things would later take a turn for the worse toward the end of May following the mining ban in China. Controversies surrounding the ban extended into June and July. At this time, Bitcoin’s price had declined to $30,000 and bottomed out at $28k in June, albeit disappointing predictions of a $25k bottom by analysts at JP Morgan.
Close to the end of July, the crypto market began to pick up speed to the upside, with Bitcoin creating 10 green candles consecutively between July 21 and July 30.
As Bitcoin has broken through the $51k resistance zone, market observers are expectant if Bitcoin will turn the $51k to a support. Last week, the flagship cryptocurrency was at the consolidation zone, trailing behind altcoins in a surge led by the largest altcoin by market cap, Ethereum. Now, Bitcoin is leading the race in a potential bull run that is likely to see all cryptocurrencies reach their former all-time highs created in April.
Elon Musk Affirms Support for Bitcoin
Despite contributing to Bitcoin’s decline, Elon Musk is still a Bitcoin proponent, evident in his comments at the July B-word conference with appearances from Ark Capital CEO, Cathie Wood and Twitter founder, Jack Dorsey. At the conference, he had revealed his Bitcoin, Ethereum and without doubt, Dogecoin holdings were still intact. Back in June, he announced that Tesla was likely to reverse its Bitcoin-EV decision.
Some altcoins including Ethereum are still trading below their May ATH. On its part, Ethereum is only 10% below its all-time high of $4,356. Meanwhile, Solana and Cardano have both created new peaks on their prices. Solana has risen by more than 70% from last week perching at $145 after reaching $150. Cardano (ADA) surged to an all-time peak of $3 as the launch date for a smart contract feature on its blockchain draws near.
Historically, September is a bearish month. However, things are looking different currently as the market is awaking from a 3-month lull.
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