The crypto market has started on another recovery trend. This time, the price of bitcoin has crossed $50,000 after a slow month in September that had the entire market in a chokehold. Crashes rocked the space and cryptocurrencies succumb to the massive value loss that put the market in the red for most of the month. NewsBTC had reported that September historically saw declining prices and this year was no different. In short, September is “bad vibes”.
The month drew to a close with the weekend and trading volume had begun to pick back up. Low volatility usually experienced during weekends has helped give digital assets the needed push and this past weekend was no different. Prices had recovered some with the start of the new week. And after Monday’s trading day drew to a close, the early hours of Tuesday ushered in better prospects for the crypto market.
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Bitcoin had steadily climbed up from the low of $43K which it had started the month with and over the course of five days has added $7K to its value to help it break $50,000 once more. This spells good news for the market as bullish sentiments have returned with this new break. Exchange balances remain low which shows that investors are continuing to hold on to their coins. And despite mounting selling pressure through these past weeks, hold sentiment has dominated throughout the bitcoin community.
Bitcoin Getting Back On Track
Bitcoin had maintained an upward momentum which put it on track to a new all-time high before the September crashes reversed that trend. But nevertheless, the month spent with low momentum gave the asset a much-needed cool-off time before its next bounce towards a new all-time high. After hitting the $50,000 price point, bulls look towards taking the asset above $52K for a setup towards $60K.
BTC price crosses $50K | Source: BTCUSD on TradingView.com
The recovery above $50K is bringing traders back into the market as the Fear & Greed Index once again goes into greed. Moving up 29 points on the index to take the market out of extreme fear from the close of last month. This turn in market sentiment will result in mounting buy pressure on investors, pushing them to throw more money into the market in order to not miss the next rally.
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This will inadvertently lead to an increase in the value of the asset, and by extension, the entire crypto market stands to gain from this buying pressure given that the market generally follows the price of bitcoin.
Bitcoin is currently trading at a little less than $50K at the time of this writing, owing to significant resistance from the $50K point it had hit not too long ago. The asset is up 4.67% in the last 24 hours and the market cap sits at $939 billion.
Featured image from CryptoPotato, charts from TradingView.com
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