Bitcoin has started the month of August with a bang as the flagship cryptocurrency now trades above the $45,000 trading zone. Many traders and analysts agree that the cryptocurrency market is now back in a bull run.
What you should know
Bitcoin rallied above the $45,000 trading zone today as short positions continue to unwind from the May 2021 sell-off in which Bitcoin lost almost 50% of its value. The world’s largest cryptocurrency by market capitalization, which now currently stands at approximately $850 billion, is up by 8.50% over the past 7 days.
Some analysts are optimistic about the broad crypto rally and see further upside, especially for second place Ethereum. Yesterday, the native token of the Ethereum blockchain, Ether, rallied past $3,000 trading zone as the latest hard fork upgrade, which was dubbed “London Hardfork upgrade” officially activated on the Ethereum blockchain network.
From a technical analysis perspective, Bitcoin’s rally above $45,000 is an encouraging sign. Its strong price action above this level means that Bitcoin is trading above the ever-elusive 200 Exponential Moving Average (EMA), which many traders believe is a key indicator to confirm the continuation of the cryptocurrency market bull run.
What they are saying
Paolo Ardoino, CTO of Bitfinex said in an email that, “A mood of optimism appears to have returned to cryptocurrency markets. Still, the turbulence that we’ve seen in crypto markets over recent weeks is unlikely to subside.”
Marcus Sotiriou, a trader at the U.K.-based digital asset broker, GlobalBlock stated, “BTC is also showing strength, which is expected to carry on next week, as it broke out of a downtrend today which dated all the way back to the previous all-time highs in April.”
Kevin Kang, founding principal of crypto hedge fund, BKCoin Capital stated, “The market has been oversold for quite some time. I think we are resuming the bull market in the coming months.”
With Bitcoin’s massive appreciation in the past 3 weeks, many traders are predicting that Bitcoin will trade over $50,000 trading zone in the month of August 2021.
Investors are however advised to be cautious as the cryptocurrency market can be very volatile and any FUD (Fear, Uncertainty and Doubt) news could trigger a sell-off in the market especially now that the U.S Congress is trying to pass an infrastructure bill which many analysts believe to be harmful to the cryptocurrency industry development in the U.S.
Bitcoin is trading at $45,050, up 4.11% as of the time of writing this report.