A downside correction in the previous session did little in keeping Bitcoin from setting a new record high this Sunday.
The flagship cryptocurrency reached a lifetime historic level above $49,300 during the Asian session. Its move uphill allowed some daytraders to secure their short-term profits, causing a small bearish correction. Nevertheless, traders appeared confident about achieving fresh highs towards or above $50,000.
CryptoBirb, an independent analyst on Twitter, shared a bullish setup that envisioned the bitcoin price at $62,000 in the coming sessions. He noted that the cryptocurrency is trading lower inside a Descending Channel pattern which constitutes a Bullish Flag in conjunction with its previous uptrend.
A breakout move above the Bullish Flag resistance expects to send the prices equal to the Flagpole’s height, as shown in the chart above. That puts Bitcoin en route to $62,000, so believes CryptoBirb.
That made $50,000 an achievable target in the short-term.
“If Bitcoin crossing $50k doesn’t catch people’s attention, nothing will,” said Josh Rager, co-founder of BlockRoots.com. “I expect more people to want to flood the market in the coming weeks with a BTC price over $50,000.”
Meanwhile, Deribit, the world’s largest cryptocurrency options exchange by trading volume, noted that its Bitcoin futures contracts were trading at a 44 percent premium—at $51,200—during the early London session Sunday. Spot rates tend to tail the futures prices.
Bitcoin continues towards setting up new highs on the backs of institutional adoption. Last week, Tesla revealed that it has invested $1.5 billion worth of BTC as an alternative to its cash reserves. Later, MasterCard and BNY Mellon announced crypto integrations in their payment and custodian services, respectively.
The announcements helped the Bitcoin price notching above $48,000 as of Friday. The weekend session experienced a mere extension of the prevailing bull trend.
“In the past year, Bitcoin has solidified itself as a macro asset, leading to new institutional players getting involved. The effects of this could mean crypto markets trade more similarly to traditional markets.”said Ty Young, researcher at Messari.
The core cause behind Bitcoin’s booming adoption among is lack of alternatives. Investors have increased their appetite for riskier assets against the backdrop of the Federal Reserve’s unlimited bond-buying and ultra-low interest rate policies.
In doing so, the US central bank has reduced the appeal of short-dated Treasurys and the US dollar. That is actively benefiting Bitcoin, gold, and the US stock market as a whole.