27.04.202118:13 Forex Analysis & Reviews: Bitcoin entrenched above $50,000 mark: prospects for cryptocurrency

The previous week and weekend quite tested the bitcoin. The asset's quotes sank to record lows and could continue to fall, which promised a depression in the market. This was facilitated by negative factors, which were aggravated by the price correction. However, the dynamics of changes in the price of bitcoin in recent days suggest that a deep crisis has been overcome.

After the weekend, the first cryptocurrency needed to gain a foothold above $50,000, so as not to fall to $40,000-$42,000. A difficult and defining boundary for bitcoin was the mark of $53,000, where a lot of market pressure is concentrated. If the cryptocurrency did not overcome this barrier, it risked aggravating the correction and reducing to $40,000. However, the situation is more positive for BTC. Over the past two days, the asset, with small drawdowns, showed an increase of 15% and managed to gain a foothold above the psychological mark. As of 10:00 UTC on April 27, the BTC/USD pair is quoted at $54,400, and over the past day, the asset has increased 2% of its value. The total capitalization of the cryptocurrency has again passed the $1 trillion mark, with an average daily trading volume of $54.5 billion.

Bitcoin managed to correct the situation thanks to several factors and a favorable combination of circumstances. First, the situation in the cryptocurrency market has stabilized due to the active growth of ether and other altcoins. This has had a positive effect on the general mood of investors, who have recently been more interested in classic financial instruments. Secondly, BTC showed that, even though the correction was deep and painful, it occurred within the framework of an upward trend and was of a technical nature, albeit aggravated by third-party factors. As a result, the first cryptocurrency managed to make the most of the current situation. The asset held safe positions and updated the institutional part of its audience at the expense of an acceptable price, which allowed it to enter the asset. Having gained a foothold over the difficult mark of $53,000, the cryptocurrency showed the market that it is confidently on its feet and is ready for a new growth cycle.

Positive news from leading asset holders helped boost investor interest and confirm bitcoin's intentions. Tesla Motors has published a report that recorded a profit from the sale of cryptocurrency in the amount of $101 million. Thanks to bitcoin, the carmaker managed to get a record quarterly profit of $438 million. Also, American bank JPMorgan added to the positive after announcing the launch of the first managed bitcoin fund. The new project will be launched this summer and will be available to a limited number of the company's clients.

In the end, the news background played up to bitcoin and helped the asset to maintain a safe position in the region of $55,000. Given the general mood of the market, we can count on the continued growth of BTC quotes, but there are no significant prerequisites for overcoming the threshold of $60,000 for the cryptocurrency. Despite the stabilization of the news background and the preservation of safe positions, the first crypto asset does not have the necessary market support to start long-term growth.