Bitcoin was trading between $47,000 and $48,000 for much of Thursday, breaking the $48,000 level multiple times throughout Thursday. Traders and analysts told CoinDesk they remain bullish on the overall market, as institutional investors’ interest in bitcoin is growing “at a staggering pace.”
- Bitcoin (BTC) trading around $47,174.04 as of 21:00 UTC (4 p.m. ET). Gaining 5.48% over the previous 24 hours.
- Bitcoin’s 24-hour range: $44,057.64-$48,635.84 (CoinDesk 20)
- BTC above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.
Despite bitcoin’s new historical high price earlier Thursday, the trading volume on the eight exchanges tracked by the CoinDesk 20 remains low compared with earlier this week.
The focus of the market on Thursday was on the news that more big players are embracing bitcoin; Mastercard said it will allow merchants to receive payments in cryptocurrency soon, and BNY Mellon announced it will launch a new digital custody unit.
“To put it simply, it’s really hard to be bearish on bitcoin right now … and you don’t even need to look too deeply at all of the fundamental metrics and technical indicators to feel that,” said Adam James, senior content editor at OKEx’s research arm OKEx Insights.
“The market is bullish,” Denis Vinokourov, head of research at digital assets broker Bequant, said. “There are no immediate fundamental factors that would drive the price down.”
Read More: Mastercard Will Let Merchants Accept Payments in Crypto This Year
That said, bitcoin is struggling to push higher after it briefly went above $48,000 earlier Thursday, according to Chad Steinglass, head of trading at CrossTower. He told CoinDesk that in the short term, the resistance level would remain at or just below $50,000.
The nearest upside hurdle will be higher, at around $53,000, according to Katie Stockton, a technical analyst for Fairlead Strategies. She also pointed out that some overbought and oversold activity will support up to two months of price consolidation.
In the longer term, said John Kramer, trader at market maker GSR, it is “realistic” to think that bitcoin’s on a “healthy” run towards $100,000 by the end of the summer.
“Expect more banks to offer custody and additional products, as well as other companies to follow Tesla and MicroStrategy’s lead,” Kramer said. “On top of this, there’s still additional stimulus on the table, which is what kicked off this rally last spring.”
However, in the derivatives market, options traders don’t appear convinced bitcoin will rally to $100,000 anytime soon. Based on current prices, the market has assigned a 12% probability this price be reached before the end of this year, as CoinDesk reported.
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