3 Reasons Why Bitcoin Just Hit Highest Level Since Mid-May
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Bitcoin, the largest coin by market cap, spiked to an intraday peak of $50,967 at 1:20 p.m. UTC on the Bitstamp exchange.
This is the highest level that the leading cryptocurrency has managed to attain since May 16.
The bulls now seem determined to push through the key resistance at the $51,000 level, which is widely viewed as the final obstacle that stands in the way of continued bullish momentum.
Ether leads the way
While Bitcoin is trading at its highest levels in almost four months, it is currently being massively outperformed by other coins.
Ether, the second-largest cryptocurrency, is a hair's breadth away from crossing the $4,000 level for the first time since May, currently trading at $3,942 on Bitstamp. Notably, the recent news about the SEC investigating top decentralized exchange Uniswap did not put a dent in the Ether rally.
The ETH/BTC pair has added more than 18% in just four days, with Bitcoin's dominance awfully close to slipping below 40%.
Alex DovbnyaTerrible jobs data
Bitcoin's most recent spike came after the U.S. Labor Department revealed Friday that employers had added only 235,000 jobs.
This disappointing number, which is far below the expected 725,000 jobs, signals that the Federal Reserve is not going to dial back its massive economic stimulus support program.
The slowing economy means that tapering, which is seen as a major threat to inflated asset prices, is likely not going to be on the table any time soon.
Apart from Bitcoin, gold and silver are also trading higher, while the U.S. dollar index is under pressure.
A favorable technical picture
Trader Scott Melker has noted that Bitcoin has managed to stage a breakout from the upper trendline of a bull pennant.
$BTC
— The Wolf Of All Streets (@scottmelker) September 3, 2021
That worked.
Breakout from pennant, retest as support, moon. pic.twitter.com/yFOcnGvbHL
Such a technical formation usually signals bullish continuation, which is exactly what is happening at press time.
Furthermore, Bitcoin already retested the critical support during a recent dip to the low level of $48,300.
Related articles
Arman Shirinyan
Godfrey Benjamin
Dan Burgin
Vladislav Sopov