The cryptocurrency market made up for some of the losses of the past few days on Feb.25, when Bitcoin (BTC) briefly fell above the $ 50,000 level and several Altcoins posted double-digit price gains.
Data from Cointelegraph Markets and TradingView show that Bitcoin bounced off a low of $ 45,200 on late February 24, before rising 15% to $ 52,000 that morning.
While the rebound in the cryptocurrency market is a welcome sight for bullish investors, Bitcoin price is still encountering resistance above $ 50,000 and this level has yet to be confirmed as support.
Economists have also begun to worry about rising government bond yields, which are usually a signal of weakness in the economy and can have a big impact in many markets.
Catalysts for a Bitcoin worth $ 100,000
After Bitcoin entered a slight correction phase, analysts are discussing whether or not the digital asset can exceed $ 100,000 by the end of 2021.
According to Giles Coghlan, chief currency analyst at HYCM, the answer to that question “depends on who you ask”. Crypto proponents feel “very optimistic” that 2021 will be “the year Bitcoin comes into the limelight,” while traditionalists remain skeptical about the “risky, unpredictable market.”
Coghlan sees the momentum behind recent gains driven by the “general public hype” following pro-crypto tweets from Elon Musk and Mark Cuban, but now the buzz seems to be “waning” as Bitcoin struggles to hold $ 50,000 .
Because of BTC’s volatility, it is “too early to say if this will be the new base support level”.
“I wouldn’t be surprised if the price slowly fell back to $ 40,000 in the coming weeks, which seems like a more realistic level of support. A drop is plausible too, considering how Bitcoin has done over the course of 2020 . ”
The analyst sees the acceptance and approval of Bitcoin by “large institutional funds and regulators” as the next big driver for new price highs, which could also end the dominance of retail in the crypto market by retailers and lead to a “less volatile” development. Market as a result.
Announcements and protocol upgrades increase altcoin prices
Prices erupted on several large and mid-cap altcoins on Thursday as recent announcements and new integrations increased trading volume.
Cardanos ADA is the best performing coin in the top 10, currently up 10.4% and trading at $ 1.15, while Fantom (FTM) continues to benefit from its recent cross-chain integration with Ethereum and is up 31.79% rose to a price of $ 0.7755.
Other notable artists include Enjin Coin (ENJ), which is currently up 34% and trading at $ 0.6221. Polygons MATIC is also up 27.74%, trading at $ 0.2023.
The total market cap for cryptocurrencies is now $ 1.533 trillion, and Bitcoin’s dominance rate is 61.3%.