Bitcoin has demonstrated a strong performance during the last week and has managed to break through a major downtrend cross and reach a new high of $57k. So far, the rise has seen a significant amount of potential revenue generation among new coins in particular, while the top coins have held their ground consistently.
Though Bitcoin has experienced periods of extreme distress during the past years, it seems it is on its way back to the market, with the intent of reaching heights it never crossed earlier.
Market fundamentals, relying on the 4-hour scale, have deduced that a modest retreat in form or a consolidation period is required before preparation for the next potential move in the market. Presently, Bitcoin is still trading well above the September peak of $57k, which is a significant milestone. If Bitcoin manages to continue its upward trend, this greatest virtual currency will likely hit a weekly closure just above the resistance level.
The SPX survived, holding onto a crucial intra week trough, and has published several closes higher, indicating the formation of a double bottom and a turnaround. Despite money pouring out of longer-term Treasuries, the dollar has remained unchanged, indicating that the risk-on trade may be returning as speculators try to move beyond the uncertainties associated with the future of cryptocurrencies.
Long-term investors have been steadfast in the face of significant drawdowns, fear-mongering, liquidation occurrences, and uncertainties this year. They have remained somehow dedicated to their duties and investments. Economics, technical fouls, and on-chain indicators have all continued to point towards a positive future.
The recent market movement has shown that the bulls are decisively regaining their share of the market from the bears. The profitability of Bitcoin compared to other financial vehicles during key risk-off developments in September is indeed a significant indication of robustness for the leading virtual currency. It likewise suggests that such growth will continue if marketplaces start operating within a risk-on environment.
The weekly close in relation to $57k will most definitely dictate the direction of BTC in the next days and weeks.