The price of Bitcoin was relatively steady on Monday after a surge at the weekend took the world’s largest cryptocurrency above $49,000 to its highest level since 7th September. After Friday’s sharp gains when the price of Bitcoin vaulted above $45,000, upward momentum continued over the weekend although began to wane as the new week got underway. The gains in Bitcoin came after a two-week period of heightened volatility after China announced that all transactions in cryptocurrencies were illegal, effectively banning anything to do with crypto and digital assets.
Then, on Thursday last week, Federal Reserve Chair Jerome Powell said the Fed had no intention to ban Bitcoin and other digital assets, although he did say that the cryptocurrency market needs regulation.
That helped propel Bitcoin higher late last week until it peaked on Sunday. The upside helped lift other major cryptocurrencies although many of the larger altcoins - such as Ethereum, Cardano, and Solana - have pared some of the gains today.
Technical Analysis
On a technical level, $50,000 will be the next big level that Bitcoin must overcome to maintain the momentum to the upside. Above that level and the 78.6% Fibonacci retracement from the September high to September low could also act as resistance at around $50,150. A move above there and the September high comes into play at around $52,900.
On the downside, the 50-day moving average at $46,660 looks likely to act as support with the 200-day moving average below there near $45,000. At 14:39BST, Bitcoin was trading around $47,900.
