Bitcoin, after crashing below $30,000 per bitcoin in July, is back to August.
Bitcoin price is up 40% since this time last month, and is approaching the psychological level of $50,000 per bitcoin – buoyed by the price rally of Ethereum, Cardano, Binance’s BNB, Ripple’s XRP, and meme-based Dogecoin.
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With cryptocurrency prices soaring across the board, pushing the common cryptocurrency market solidly above $2 trillion for the first time since May, some bitcoin and cryptocurrency investors are feeling confident that the price of bitcoin could surpass its all-time high of over 60 one thousand dollars.
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“[Bitcoin’s] Mike McGlone, chief commodity analyst at Bloomberg Intelligence, said in a TV interview this week: [bitcoin] Just follow ethereum, go to $100,000.”
Ethereum, the second largest cryptocurrency by value, has overtaken Bitcoin this year, with its rise fueled by major upgrades, a booming decentralized finance (DeFi) market and the madness of NFT — with both DeFi, seeking to re-create traditional finance without the need for banks and NFTs, there are unique digital crypto tokens associated with online media, based almost entirely on Ethereum.
The price of Ethereum is up nearly 700% from this time last year, while Bitcoin has added about 300%. The other 10 cryptocurrencies – including Ethereum rival BNB and cardano, as well as XRP from Ripple and Elon Musk’s pet project Dogecoin – have made significant gains over bitcoin.
Ethereum is up 70% this past month alone, while BNB is up 30%, cardano is up 65%, dogecoin is up 50% and XRP has doubled. After the massive rally of Ethereum, Cardano, BNB, XRP and Dogecoin, some expect Bitcoin to start making gains.
“Bitcoin appears to have established a base of around $30,000, equivalent to $4,000 at the start of 2019, and we see similarities in performance that could put the benchmark cryptocurrency back on track toward $100,000,” McGlone wrote this month in his August report.
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Tom Lee, Head of Research at Fundstrat Global Advisors, believes that Bitcoin is returning to a higher rally, citing technical trading data.
With bitcoin crossing above [its average price over the last 200 days]“We believe Bitcoin will rise strongly to the end of the year,” Lee wrote in a note first reported by CNBC.
However, others are more cautious. David Russell, Vice President of Market Intelligence at TradeStation, has warned that bitcoin could “pause” after rising from its July lows.
“[Bitcoin’s] Near the same level below it the sellers are becoming aggressive [in mid-May]“This is the most significant resistance area Bitcoin has faced so far in the current bounce,” Russell said in the emailed comments.
“We think the market should take a break here,” Pankaj Palani, CEO of crypto derivatives exchange Delta, said by email.
Balani predicts that Bitcoin will rise above $50,000 in late August or early September – “a clear break above that should attract new flows and send a strong signal that the market correction may have completed.”