Bitcoin is $50,000. What’s next?

Bitcoin is $50,000. What’s next?

Bitcoin

Over the past week, bitcoin has made significant progress after breaking out of the $48,000 resistance zone. Earlier, the first cryptocurrency hovered in the key supply zone at the level of $ 48,000, and by last Thursday it had fallen to $ 43,900. Since then, bitcoin bulls have regained control, forcing the cryptocurrency to reach a new three-month high of $50,280. This is the best bitcoin rally since February – we are already seeing the fifth week of growth.

Despite the rally, the BTC dominance index, reflecting bitcoin’s market share relative to the entire crypto market, fell to 44% amid the growth of altcoins such as ADA, BNB, DOT and SOL.

A slight rollback of bitcoin to the 20-day exponential moving average (EMA) allowed the bulls to regain positions and re-enter the market. This conclusion is confirmed by Binance Futures data on the ratio of long/short positions. The ratio increased from 1.44 to 2.03 amid a drop in the price of bitcoin from 48,000 to 44,000 US dollars.

After the trend is restored, the next psychological barrier of $60,000 will be tested. Psychological levels are price lines expressed in round numbers, which are support and resistance lines in cryptocurrencies. In this case, the level of $ 60,000 can be a decisive turning point that can trigger a wave of sell orders, as traders seek to lock in profits.

Ethereum and Altcoins

For Ethereum, the second largest cryptocurrency, the week turned out to be relatively lackluster: over the past seven days, it has lost a little more than 2% in price, despite the revival in the altcoin market.

Since the launch of the London hard fork, ETH has been showing a continuous bullish course, adding more than 90% from a low of 1,700 US dollars in mid-July. Thus, the slowdown in growth is not surprising – the purchasing impulse has begun to weaken. Nevertheless, for two weeks now, ETH has been holding near the $3,000 mark, and investors are closely monitoring all events related to the consolidation phase.

If the support level persists, Ethereum may continue its multi-week uptrend with a target of $3,800, testing the Fibonacci extension level of 78.6%.

Cardano (ADA), the native cryptocurrency of Charles Hoskinson’s public blockchain, has reached a new record high of $2.83. At the time of publication, the market capitalization of ADA was more than $ 90 billion, thanks to which the cryptocurrency rose to the third place in the rating of cryptocurrency market capitalization.

Investors’ sentiment is significantly influenced by the upcoming update of Alonzo.

The update is aimed at introducing the functionality of smart contracts and eliminating one of the most important, according to critics, shortcomings of the network.

Support for smart contracts is a big step that will allow Cardano to compete with other programmable blockchains and significantly expand the solutions offered to partners.

As a result, over the past two weeks, the total volume of trading in ADA futures contracts has grown to more than 32 billion US dollars (two weeks earlier – 10 billion US dollars). Open interest in ADA futures also rose to more than $390 million, having increased by more than 102% over the past two weeks.

The main market changes on Binance Futures

Against the background of increased trading activity and volatility, Binance Futures perpetual contracts have provided traders and investors with new tools to use trading opportunities.

Disclaimer: The information in this section is provided for review, is not investment advice, and does not reflect the official position of Binance.

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