The recent price rally is not indicative of a massive jump just yet, according to Konstantin Anissimov, Executive Director at crypto exchance, CEX.IO. However, he said that if more buyers dive in to push the price above the $50,000 level, a frenzy could be ushered in to steer the price toward a target of $55,000.
“The next major resistance, for now, is at the $50,000 zone,” said Anissimov.
The cryptocurrency is now posting a 66% year-to-date return, CoinDesk data shows.
“The institutional world is turning cautious on stocks and that is making cryptocurrencies look very attractive,” said Edward Moya, senior market analyst at Oanda. Wall Street doesn’t seem to be worrying about a taper tantrum next week, which is helping the cryptocurrency break out, according to Moya.
“If bullish momentum remains in place and next week, Fed Chair Powell pours cold water over tapering asset purchases, bitcoin could rally towards $52,500 by the end of next week,” he added.
Technical analyst at Quantum Economics, Imran Yusof, said that bitcoin will still need to clear resistance at $49,800 and stay above this level “before we can grade this as some kind of progress.”
“If $49,800 doesn’t clear, however, bitcoin may just fall back toward support at $45,000,” said Yusof. He added that he thinks this fall is going to happen and that bullish sentiment remains strong.
The second largest cryptocurrency by market cap, Ethereum, is also posting gains. Up 7% in the last 24 hours, ether (ETH, +6.77%) was trading at $3,274 at press time.
This week has also seen ETP inflows in other coins such as Solana, Polkadot and Cardano and Ether, according to Laurent Kssis, managing director of 21Shares’ ETP business.
“The performance of these coins is attributed to bitcoin’s rise, which may see a reset at $50,000,” said Kssis.