It looks like the digital coin will retain a strong bullish tone in the short term despite the overbought conditions
Bitcoin price has finally broken above the $50,000 psychological level for the first time ever, extending the rally on Wednesday. In recent trading, the BTCUSD pair climbed to $51,400, and it looks like the digital coin will retain a strong bullish tone in the short term despite the overbought conditions.
The latest rally was fueled by a report that the payment giant MasterCard is planning to give merchants the option to receive payments in cryptocurrency later this year. As a reminder, the company previously supported limited cryptocurrency transactions through its cryptocard partners Wirex and Uphold.
Besides, the world’s largest cryptocurrency by market value has gotten a boost from Bank of New York Mellon. The oldest bank in the United States said last week that it will begin financing bitcoin and other digital currencies and will eventually allow digital currencies to pass through the same financial network it currently uses for more traditional assets.
Earlier, BTC received a boost from Tesla. The world’s leading electric-car maker announced that it has bought $1.5 billion in bitcoin and would start accepting the cryptocurrency as payment.
Against the backdrop of these events, the number one digital currency continues to attract demand despite the already elevated levels as long-term investors are betting on further gains in the asset.
From the technical point of view, the $50,000 figure now represents the immediate significant support while on the upside, a decisive break above the $51,500 level would pave the way toward the next barrier around $52,000.
Both short- and long-term technical remain bullish. Furthermore, now, as the cryptocurrency has exceeded the $50,000 threshold, chatters surrounding the rally towards the $100,000 figure will likely gain momentum in the coming weeks. In case of a downside correction, buyers would reemerge just below the $45,000 figure.