Bitcoin has surged again, putting the coin above the $50,000 mark for the first time ever, as the entire market capitalization expands above $1 trillion.
That double increase gives traders multiple reasons to be enthusiastic about where Bitcoin is going in the future.
At Coindesk, Omkar Godbole suggests that in facing a recent dollar rally, with the dollar index going up 1.2% last week, Bitcoin is showing that it has the chops to withstand positive dollar activity.
“A rise in prices alongside an uptick in open interest is said to validate an uptrend. Meanwhile, a price drop is said to be temporary if it is accompanied by a decline in open interest,” Godbole writes. “That’s what happened during Bitcoin’s recent correction to $43,000.”
Previously, analysts were thinking that a weak dollar helped Bitcoin, and a strong dollar hurt Bitcoin. Defying strong dollar activity gives Bitcoin another indicator that it’s on the upward swing over the long-term. Keep in mind also that the current price is more than double all-time highs from 2017.
Over at Cointelegraph, watching traders clamor for BTC, Will Suberg suggests that many large investors “bought the dip” when BTC went down about $5,000 from recent peaks.
“There’s no shortage of demand for Bitcoin, even at $50,000, as big buyers dwarf smallholders in the latest stage of the bull run,” Suberg writes. “In an update on March 9, on-chain analytics service Material Indicators noted that buy orders of $100,000 and higher on Binance — the biggest cryptocurrency exchange by volume worldwide — are reaching all-time highs.”
All of our usual Bitcoin cheerleaders are already on record plugging BTC prices of $500,000 or $1,000,000 by 2022, or 2024, or 2025. We’ll see what happens. Take stock of your short-term BTC strategy as the coin soars yet again – and stay tuned for more coming into this week, which may be a volatile one for crypto.
