Bitcoin breaks important $50,000 resistance level as bullish "Uptober" continues

Bitcoin breaks important $50,000 resistance level as bullish "Uptober" continues

Bitcoin has kept strengthening on Tuesday as the coin broke a critical resistance level of $50,000. The last time this happened was in the middle of September when the coin reached nearly $53,000 before being shortly rejected and falling to a low of $40,000 after Evergrande fears in late September.

However, as of early October, Bitcoin has continued its recent uptrend. Bitcoin broke several resistance levels and is currently sitting above $50,000. It is not yet known for sure whether or not the coin may hold above this level. However, October has always been a bullish month for Bitcoin. Crypto fans are calling the month "Uptober" due to massive gains seen in October before.

The October of 2020 also saw one of the highest gains for Crypto. Bitcoin jumped nearly 40% in just one month. This may be the case for this year too as almost all coins have seen substantial gains as the Q4 begins. Ethereum has also been eyeing $3,500. However, no breakout has been confirmed as of now.

Analysts are also waiting for the U.S. Securities and Exchange Commission (SEC) to approve a bitcoin exchange-traded product (ETF), which could happen in a matter of weeks. Some analysts are expecting another Crypto rally if the SEC approves the ETF.

Other altcoins have also been on the rise as Axie Infinity’s AXS token hits a record high. Axie Infinity’s token reached a record $153 days after the play-to-earn game announced it would distribute over $60 million worth of tokens to its early adopters and the launch of staking capabilities.

“Staking yields on AXS remained exceptionally lucrative (189% APR), even with 12.4 million AXS staked already and growing, leading to a real risk of a supply crunch for AXS,” said Denis Vinokourov, head of research at Synergia Capital. “This could result in exponential, albeit likely unsustainable, upside, and in the end leading to erratic and choppy price action.”

This latest surge has also pushed Bitcoin's market capitalization to close to $1 Trillion. This made Bitcoin surpass Facebook's market capitalization who lost billions of dollars in value earlier this week after an outage that lasted for hours. Moreover, due to the massive uptrend in the price of Bitcoin just five days into October, bulls have been calling for a new all-time high for Bitcoin.

Although Bitcoin still has to gain $13,000 to set a new all-time high, this is possible due to the recent bullish news for Bitcoin. The Crypto market has also made a surprising recovery after the Evergrande controversy. Cryptocurrencies have also been eclipsing the stock market as both the S&P and Nasdaq Composite eye a bearish month.

Although Bitcoin has been on the uptrend this week, Bitcoin still needs to see a confirmation above the $50,000 range. But if the analysts are correct, this may spark a rise in price for Bitcoin, and the Cryptocurrency could achieve record new price highs along with the rest of the Crypto market.

Omor Ibne Ehsan

Omor Ibne Ehsan

Omor Ibne Ehsan is a writer at Wealthier Today. He is an active contributor to a variety of finance and crypto-related websites and a passionate advocate of blockchain technology.