Another All Time High Possible As BTC Tests $55,000

Bitcoin is trading above $55,000 after weeks of vicissitudes. The implication of the recent rally is that we would see prices not yet seen since May when the asset soared above $60,000. 2021 has been the year of the bulls with the coin market producing many surprises as the value of specific tokens soared.

These are direct contrasts to 2018 when the market slumped after an eventful 2017 that gave the market an unprecedented attention and consequently, an ATH for BTC and several altcoins. The possibility that the coin market would recover at least in the short term became obvious after Fidelity announced it plans a custodial service for Bitcoin by March of 2019.

The market had made slight gains overnight adding $2 billion as coins like Bitcoin, Ethereum and EOS made gains ranging from 0.3% to 1.6% preventing Bitcoin from dropping to lower $3000.

Cryptoinfowatch had posted that January would be a determinant month in the course of the trend for 2019 considering that the fundamental factors that will set the stage to catalyze the trend for the year will likely engage in the first few weeks of the year. It is interesting that it was the turning point that saw the price of Bitcoin and the coin market at large recover.

A Positive Catalyst for Bitcoin

Fidelity administers $7.2 trillion in assets and its announcement that its custody service will commence in March was the incentive for the current market reaction that added $2 billion to the coin market capitalization.

Bloomberg reported that the Fidelity Digital Asset which the company is launching to serve selected clients would execute trades as well as store digital assets. A tweet on the project made by Matt Odell stated:

“Fidelity, among the largest providers of retirement savings and mutual funds, is hoping it can leverage its famous name and win over institutional customers keen on digital currency trading. The company already works with more than 13,000 financial institutions.”

Although not open to retail investors, the service that was first announced in Q4 of 2018 is expected to be among the drivers of the crypto economy in the Q1 of 2019

A Different Bear Market Like No Other

This is unlike other Bitcoin bear markets that had passed quietly without any factors catalyzing a recovery. Institutional investors are aware that Bitcoin is a viable asset class despite its volatility. This makes the current bear market the most interesting as all eyes seem to be on the industry to know what happens next.

Vinny Lingham, a partner of Multicoin Capital said that the recent readjustment in Bitcoin value is timely because a breakdown of price below $3000 would signal a “crypto nuclear winter” inferring that it may make recovery even more challenging.

Jeff Sprecher, the NYSE chairman said regarding the new trend,

“The unequivocal answer is yes [crypto assets will survive]. As an exchange operator it’s not our objective to opine on prices,”

In other words, cryptocurrencies has come to stay despite the bear market. The volume of Bitcoin traded is still low indicating that the bear market is not yet over, however it is obvious that with strong fundamental factors were expected in Q1 of 2019, we’re would likely see a trend reversal in coming weeks.

Lower Price for Bitcoin May Lead to Large Market Drop

Even with the recent slight market rebound traders and analysts are cautiously optimistic with some saying that the fundamental metrics came at the right time to prevent further slide in the value of Bitcoin.

BTC ChartOne analyst believes that if the price of Bitcoin fell below $3000, it would make a steep decline to $2000.  There is a consensus that the best thing that could happen to the coin market is a mini rally to the $4000 region. The latter was the case and today, the price of the coin is in the range of $50,000 having tested a range above $63,000 in May, 2021.

Positive outlook towards the prospects of Bitcoin market is consequent upon fundamental factors that favor upward price movement such as the Fidelity announcement and the Nasdaq plan to launch Bitcoin futures in Q1 of 2019. Presently, Bitcoin is trading above $55,000 and is poised to go even higher as seen from the MA chart.

 

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.

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