By Shelly Melancon (Switzerland)
Bitcoin, the largest cryptocurrency by market cap, continued its bullish run on Wednesday, even as the U.S dollar continued to rise. As of the time of writing this report, Bitcoins price is just 10% short of hitting its all-time high, as it peaks towards the $58,300 mark.
Bitcoin’s Price Next Resistance Level is $56,000
Based on market data on BTC/USD pair, collated from Cointelegraph and Tradingview, Bitcoin’s price successfully withstood a late-night flash correction, with the subsequent rebound keeping it convincingly above $55,500 value. Also, it was observed on the Binance exchange, that sell orders above or near $56,000 populated the order book, with a strong support area at the $49,000 level.
The current valuation is a continuation of a bullish season that started two weeks ago. Since then, Bitcoin price has consistently moved in an up-and-down pattern, repeatedly testing $54,500 on the upside but never getting past that height, despite the high optimism of traders.
A Huge Influx of Private Organization Into Crypto
However, the recent capitulation can be attributed to the fact recently more than ever before, there are a good number of events (political, social, and economical) that have injected fresh momentum, which could finally see Bitcoin price outperform its historical all-time high- $58,300. According to Cointelegraph Analyst, Michael can de Poppe, there is a “beautiful rejection for Bitcoin $56,000” on the 24-hour chart.
Commenting via his Twitter account (@CryptoMichNL), he went further to say: “If the $52,000 area holds, we can see further sideways action and renewed tests of $56,000”, adding that “$52,000 is critical to hold to avoid further downwards moves.”
But the likelihood of a return to $52,000 is very unlikely, as another batch of institutional investors joining the crypto sector make headlines. If there were any such fears, the massive excitement that greeted the news has effectively put the pessimism to rest.
Notable among the list of more private companies embracing crypto adoption is home-appliance coverage services firm, American Residential Warranty (ARW). Like its counterparts, the company has decided to invest in cryptos through the services of the U.S.-based exchange, Gemini.
Announcing the partnership through his Twitter account, Tyler Winklevoss, twin-co-founder of the exchange, had this to say: “…And another company (ARW) has decided to put bitcoin on its balance sheet”.
A Historical Shift in Market Factor as DXY no Longer Controls BTC
Meanwhile, as per historical data, Bitcoin’s price tends to regularly reverse backward, each time the U.S dollar gains momentum upwards. That inverse relationship was strong even in the year 2020. However, starting this day, the correlation seems to be growing weaker, as in March both currencies were seen moving in the same direction, with Bitcoin making a higher progression northward.
Cointelegraph had frequently reported how positive performances in the dollar currency index (DXY) seem to force Bitcoin’s price into dips, with BTC moving in the opposite direction when the situation flips. But as data shows, 2021, especially during March, has been remarkably different.
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