- Bitcoin is back above $50,000 for the first time since May
- Bitcoin broke through overnight following heavy pressure in the past few days
- The move reinforces the idea that a repeat of 2013 is on the cards
Bitcoin broke through the psychological $50,000 barrier overnight for the first time since it fell through it in May, leaving it only 22% away from its all time high of $65,000. Bitcoin has put on a stunning show of growth since threatening to drop through $29,000 a month ago, with the total market cap almost doubling in that time. Bitcoin now faces a few more hurdles before returning to all time highs, suggesting that a repeat of 2013 is indeed on the cards and higher valuations for the cryptocurrency are in the works for later this year.
Bitcoin Turns $48,000 Into Support
Bitcoin was well placed last night to break $50,000, sitting in the mid-$48,000 region having overcome a key support/resistance flip, and it didn’t disappoint. From a nightmare scenario of a revisit of 2017’s $20,000 high, Bitcoin is now instead looking at key levels on its easy back to $65,000:
The significance of this breakthrough is not as important as it was when it first broke through in February, which precipitated a quickfire $7,000 gain, but it is important in the context that $48,000 should now hold as support going forward:
More Evidence of 2013 Repeating
This breakthrough reinforces the idea that 2021 will be a repeat of 2013, seeing two bull cycles in the same year, with Bitcoin’s race back to $50,000 now giving it three months to get above $65,000. It would be unusual for Bitcoin to reject at all time highs and enter a bull market, so we have to assume that once it does pass $65,000 the usual hype will come back in the market that will drive it toward the generally accepted target of around $100,000.
