Bitcoin knocks on door of $50,000 after rising above resistance

Bitcoin is nearing the key $50,000 level as it continues to rise out of a multi-month period of weakness.

The largest cryptocurrency reached as high as $49,704, the highest since May 16, midday Saturday in New York. Its rally is overcoming a rare confluence of technical obstacles, including an April low of about $47,000 and a Fibonacci and Ichimoku cluster between $47,000 and $48,000.

The 61.8 per cent Fibonacci retracement of the April to June downtrend – at $51,000 – still looms as a potential obstacle, along with the round-number $50,000 mark.

“The next major resistance, for now, is at the $50,000 zone,” said Konstantin Anissimov, executive director at CEX.IO crypto exchange. “The recent price rally is not indicative of a massive jump yet, however, should more buyers dive in to push the price above the $50,000 level, a frenzy may be ushered in to steer the price toward a medium-term target of $55,000.”

Bitcoin has recovered after trading in a range of about $30,000 to $40,000 for many weeks, after it plunged from a record near $65,000 in mid-April. Still, it’s up significantly in the past year amid institutional adoption and endorsements from big names like Paul Tudor Jones and Stan Druckenmiller.

Global crypto adoption has risen some 881 per cent in the past 12 months, according to Chainalysis.