The cryptocurrency market has started another recovery trend. This time around, the bitcoin price crossed $50,000 after a slow month in September when the entire market was stifled. The crash rocked the space and the cryptocurrency succumbed to a massive value loss that put the market in the red for most of the month. NewsBTC reports that September has historically seen price drops and this year was no different. In short, September “bad feedback.”
The month is coming to a close with the weekend and trading volume is starting to rise. The low volatility that usually occurs during the weekends helped give digital assets the needed boost and last weekend was no different. Prices rebounded with the start of the new week. With Monday’s trading day drawing to a close, the early hours of Tuesday heralded better prospects for the cryptocurrency market.
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Bitcoin has risen steadily from the $43,000 low it started the month with, and over five days has added $7,000 to its value to help it break $50,000 again. This is good news for the market as bullish sentiment is back with this fresh break. Exchange balances remain low which indicates that investors continue to hold their coins. And despite the mounting selling pressure over the past weeks, sentiment has been dominating across the Bitcoin community.
Bitcoin is back on the right track
Bitcoin maintained an upward momentum that put it on track to a new all-time high before the September crash reversed that trend. But nevertheless, the month with low momentum gave the asset a much-needed cooling time before its next bounce towards a new all-time high. After reaching the $50,000 price point, the bulls are looking to take the asset above $52,000 to prepare it towards $60,000.
BTC price crosses $50K | Source: BTCUSD on TradingView.com
A recovery above $50K brings traders back into the market as the Fear and Greed indicator turns once again to greed. The index rose by 29 points to take the market out of the intense fear of last month’s close. This shift in market sentiment will escalate buying pressure on investors, prompting them to pump more money into the market so they don’t miss the next rally.
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This will inadvertently lead to an increase in the value of the asset and, therefore, the entire crypto market will benefit from this buying pressure as the market generally follows the bitcoin price.
Bitcoin is currently trading at just under $50K at the time of writing, given the significant resistance from the $50K point it reached not too long ago. Assets are up 4.67% over the past 24 hours and the market capitalization is $939 billion.
Featured image from CryptoPotato, charts from TradingView.com
