3 Reasons Why Bitcoin Just Hit Highest Level Since Mid-May
Bitcoin, the largest coin by market cap, spiked an intraday peak of $50,967 to at 1:20 UTC on the Bitstamp exchange.
This is the highest level the leading cryptocurrency has managed to attained since May 16.The bulls now seem to be determined to push through the key resistance at the $51,000 level, which is widely viewed as the final obstacle that stands in the way of continued bullish momentum.
Ether leads the way
While Bitcoin is trading at its highest levels in almost four months, it is currently being massively outperformed by other coins.Ether, the second-largest cryptocurrency, is a hair’s breadth away from crossing the $4,000 level for the first time since May, currently trading at $3,942 on Bitstamp. Notably, the recent news about the SEC investigating top decentralized exchange Uniswap didn’t put a dent in the Ether rally. The ETH/BTC pair has added more than 18 percent in just four days, with Bitcoin’s dominance being awfully close to slipping below 40 percent.
Terrible job data
Bitcoin’s most recent spike came after the U.S. Labor Department revealed Friday that employers had added only 235,000 jobs.The disappointing number, which is way below the expected 725,000 jobs, signals that the Federal Reserve is not going to dial back its massive economic stimulus support program.The slowing economy means that tapering, which is seen as a major threat to inflated asset prices, is likely not going to be on the table any time soon.
A favorable technical picture
According to trader Scott Melker has noted that Bitcoin has managed to stage a breakout from the upper trendline of a bull pennant.
$BTCThat worked.Breakout from pennant, retest as support, moon. pic.twitter.com/yFOcnGvbHL— The Wolf Of All Streets (@scottmelker) September 3, 2021
Such a technical formation usually signals bullish continuation.Furthermore, Bitcoin has already managed to retest the critical support level.Source