The Bitcoin price has jumped 23% since August. The crypto market leader has been in the spotlight after surpassing the crucial level of $50,000 on Thursday. The BTC coin has jumped more than 5% in the last seven days. Its total market capitalization currently stands at $930 billion, making it the most valued digital asset in the world.
Bitcoin breached the $50,000 level once again on Thursday, after briefly stalling over the same level on August 23- a three-month high. Bitcoin’s efforts to get back to recent highs boosted the momentum in the crypto market.
In the last seven days, the overall cryptocurrency market has been on a bull run. Ethereum, the world’s second-leading cryptocurrency, has jumped more than 21.50% in the past week. ETH has been hovering over the key resistance level at $3,400 for the first time since June. Cardano has also surpassed the $2.80 crucial level.
According to analysts, two fundamental factors are likely to be behind Bitcoin’s jump. First is El Salvador’s take on Bitcoin. El Salvador announced that it will be officially launching Bitcoin as a legal tender on September 7. Second is Twitter’s potential addition of the coin as a Tip Jar payment option.
Investors are expecting the Bitcoin price to hold above $50,000 as buyers remain optimistic for a bigger price gain by the end of the year.
The daily chart shows that the Bitcoin price has been trading sideways for the past two weeks. The coin has jumped 72% since the year started. At the time of writing, it was slightly higher at $49,375.
It is trading above the 25 and 50-day exponential moving averages. It is also trading above the 50-day moving average.
Therefore, the BTC price needs to settle above the $50,000 level to continue its upside move. If this happens, the next resistance level will be at $51,500. However, a move below the 50 DMA will invalidate this view.