Bitcoin has broken through and surpassed the expectations of investors and users around the world, and this happened for the second time since the previous month. The first and the most popular cryptocurrency in the world by market capitalization is gradually making its way towards the top after having followed a downward trend touching its yearly low point of $29,900.
At this point, the cryptocurrency is trading at an average of $52,333, with the charts pointing out a 1.4% profit daily and a 7% profit on a weekly basis. As the reports are suggesting right now, Bitcoin has been able to crash the major point of resistance at the mark of $52,000. This happened at the same time when the news broke that for the first time, the President of El Salvador had made a purchase of 200 Bitcoins worth $10 million.
According to the state of affairs at this point, it sure does seem that the biggest cryptocurrency in the world is back in control of its bullish trend, and according to the opinion of experts, reports suggest that it is possible for Bitcoin to rise up to the next level of resistance, which could be at the level of $56,000, for the very first time since back in the month of May, when the valuation had risen to a considerable height. Experts opine that if Bitcoin does manage to surpass that level of resistance, there is a high probability that the bulls could be racing to move into the area of $60,000.
According to Mike McGlone, who is the senior Commodity Strategist for the globally popular Bloomberg Intelligence, this entire event can put Bitcoin in the path of minimum levels of resistance. The price target that can be set in order for Bitcoin to travel on that path is a minimum of $100,000 by the end of this year, and the price target for the second-largest cryptocurrency in the world, Ethereum, is $5000 if it has to be on a similar path to face minimum resistance.
He further stated that after having witnessed a gut-wrenching reformation, we are standing at a point now where the crypto market, in all probability, is likely to continue its upward trajectory rather than dropping below the low valuation sustained during the second quarter of the year. Another report from Glassnode is extremely supportive of the bullish trend for Bitcoin. The firm had also recorded a notable recovery of the mining sector which had suffered a minor setback when they were moved out from China while they were forced to relocate to other places. The recent appreciation in the cryptocurrency market has been a boon for the miners who have been able to gather some profits.
Institutions are back, and indicators report more profits
Indicators from Glassnode have been employed to figure out the correlation between the price of Bitcoin and the number of coins that are sold or even accumulated by the miners. As a result, the much-dreaded pressure of selling that actually resulted in plummeting the price of Bitcoin seems to have gone away from the picture now.
In addition to this, the records from Glassnodes are suggesting that there has been an increase in the size of transactions by the users of Bitcoin. As a result, there has been a sharp contrast between the previous market cycle and the currently existing one. What really matters, according to the reports, is that even though the cryptocurrency had a 50% drop in its valuation, the institutions still decided to stay and wait till the worst was over.
According to data analyzed by the experts at Glassnodes, they are positive that the investors have a high degree of confidence and conviction when it comes to holding their Bitcoin reserves.
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