Cryptocurrency markets were catapulted into a frenzy today after Bitcoin briefly nudge over $50,000 to set a new high in its recent and remarkable run of bullish form.
The portents suggested a field was being prepared for change shortly after midnight when a sudden move from a seemingly settled line of sub $48k saw trading volume elevate the price, unchecked, by $600.
Two more hourly candles flickered green as the steps took BTC’s value above $49,000 for the first time since a sudden rush of Valentine’s Day emotions only a few days earlier, before a gentle wave of bearish resistance drove things back towards a revisit of $49,000.
Some degree of to-and-fro across that figure escalated before noon today, though, as a steady climb saw Bitcoin make its move towards the massive psychological figure of $50k. The volume was there, but the resistance was not.
With ten minutes to go before the close of the hourly candle, BTC breached the line twice before effervescing officially through a green wick to lay down a serious marker that many will view as a solid indicator of market intentions over the next few days.
Within minutes of planting their flag above $50k, however, breathless bulls had a sudden bout of altitude sickness and retreated rapidly, slipping below $49,000 before the bounce back saw them digging their crampons into the ice around $49,350.
And there they held until the bears of San Francisco smelled breakfast – around 4pm London time – and began their pushback on some clearly exhausted bulls. Charts took on a particular shade of scarlet as the shallow downward candles calmly offset the drama of their longer counterparts in a determined effort to shy away from $50k.
Nevertheless, across the crypto world, the vast significance of breaking through such a huge milestone was not lost. Twitter was awash with animated gifs of popping Champagne corks and various ‘to the moon’ memes.
While it may have been a brief foray into new territory, Bitcoin made it nonetheless.
What happens over the next few days is anyone’s guess – for every social media ‘expert’ proclaiming the next stop will be $100k, there are an equal number of temperate voices eulogising about a retest that will see Bitcoin crash back below $40k. There are also plenty of echoes whispering about the market doing nothing other than undulating around $48,000 and $49,000.
No matter how the next few hours, days and weeks pan out, February 16 2021 will stick long in the memory of those with even half an interest in the crazy world of cryptocurrency. It’s the day that world got a little bit crazier – the day the Battle for $50k began.
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