The Bitcoin price has been on several twists and turns for the past three weeks. The coin has jumped nearly 3.10% in the past week; however, it is still 28% below the highest level this year. Bitcoin is the world’s largest digital asset and has a total market capitalization of $871.8 billion.
Bitcoin Price Action
Bitcoin was hovering over its highest level since mid-May over the weekend. The crypto leader topped $48,000 but pared some of the gains earlier on Monday. The digital coin jumped to $48,127.28 on Saturday, the highest level since May 17, 2021.
Bitcoin dropped 1.90% to trade at $46,050 on Monday. The coin’s recovery followed a two-month sell-off in June and July. It dropped below the $30,000 level in July before bouncing back.
The rise in the Bitcoin price boosted the value of the overall crypto market. The overall value of the cryptocurrency market skyrocketed above $2 trillion on Saturday, the first time since mid-May. It also boosted the price of most altcoins due to its close correlation with most coins.
Investors linked the decline in BTC’s price to the regulatory scrutiny on the industry from the Chinese government. In May, Beijing imposed a severe crackdown on Bitcoin mining and trading. The crackdown led to the shutting down of Bitcoin mining operations in China, forcing them to move elsewhere. It led to the decline of Bitcoin below the $30,000 level.
Analysts remain optimistic about Bitcoin’s performance for the rest of the year. Some investors stated that the price could jump to $55,000 in the near term.
BTC Technical Analysis
On the daily chart, the Bitcoin price has been on a slow upward trend. It is trading more than 65% above its lowest level in July.
The coin hit an intraday high of $48,053 earlier on Monday before pulling back. It is trading above the 25 and 50-day moving averages, boosting its bullish outlook.
Therefore, the bulls’ next target will be the resistance at $50,000. However, a move below the support at $43,697.79 will invalidate this view.