Bitcoin Breaks $50Okay for First Time in a Month

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Bitcoin, the largest cryptocurrency by market value, crossed the crucial psychological threshold of $ 50,000 on Tuesday for the first time since September 7th.

“It’s too early to say if this will turn into a new level of support in the short term, but it is clear that the prevailing market sentiment is bullish,” said Jason Deane, an analyst at Quantum Economics.

At press time, Bitcoin was trading at around $ 50,250, up 5.4% over the past 24 hours.

Given the challenging environment across all other asset classes, long-term Bitcoin holders are the backbone of this rally above the $ 50,000 mark, Edward Moya, senior analyst at Oanda, said in an interview with CoinDesk.

“If the buying momentum continues and the price moves above $ 52,000, we could confirm the end of this consolidation pattern,” said Moya. (A consolidation pattern is a pause in the trend of a stock that allows the trend to continue.)

Wall Street is facing a troubled time dealing with market risks, Moya said, such as the prospect of the Federal Reserve cutting back on $ 120 billion a month in monetary stimulus, an energy crisis, and rising bond yields.

This should only help cryptos in the short term, ”he said.

“A bitcoin breakthrough of $ 50,000 is confirmation that the bull market is back,” said Lucas Outumuro, director of research at IntoTheBlock.

According to the company, it previously purchased more than 800,000 BTC for around $ 48,000. Sometimes buyers and sellers target these entry levels for making important trading decisions.

“Such a high concentration of volume creates resistance to price action,” said Outumuro. “Now that we’ve passed that level, there doesn’t seem to be any significant resistance up to $ 56,000.”

The recent Bitcoin surge appeared to spark a broad rally in cryptocurrency prices. The Ethereum blockchain’s native cryptocurrency, Ether, rose 3%, while Polygon’s MATIC rose 4.8% and Binance’s BNB coin rose 4%.

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UPDATE (OCTOBER 5, 10:26 UTC) Adds odds, altcoins, S&P 500’s October performance; updates the bitcoin price.

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