The price of Bitcoin has failed to move into a critical psychological barrier of $50,000 on the 23rd of August. Since then, the price has retested at the support level of $47,000. If historical data does play a role in the price of a cryptocurrency, one could jog back to the month of September which has presented wildly negative performances in around 4 of the last 5 years.
Michael van de Poppe, market analyst, and Cointelegraph contributor, recently stated that the break of Ethereum at a price above $3,500 could definitely be a major indicator for the next bull run of BTC. Also, now that the trade of Ethereum has been at a price of $3,700, most investors have anxiously been waiting for the next move of this cryptocurrency.
Bitcoin Bulls Looking Towards a Mark Of $50,000
Bulls have also been pretty excited about the Bitcoin Law put forward by El Salvador, which will definitely take effect on the 7th of September. In addition to that, the recent BTC trust of $150 million approved by the Legislative Assembly of the country would be another bullish development. The money would then be used in the installation of crypto ATMs that are government-backed while offering incentives that would encourage Chivo adoption- which is a digital wallet backed by the government.
The current week saw Coinbase witnessing a major outflow of Bitcoin after a very stable period. This move also brought the balance of the crypto exchange below a sum of 700,000 BTC- which was last seen four years ago. Interestingly, these movements have usually been considered bullish simply because they signal that holders will be selling fewer coins in a relatively short period of time.
The most important test faced by Bitcoin at a level of $50,000 would be poignant for the development of the cryptocurrency- as bulls will have far significant incentives to destroy the protective put option while landing a $165 million advantage.