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Bitcoin rallies above $50,000, 'in a battle for new all-time highs and potentially beyond'

By Frances Yue

Ether, the second largest cryptocurrency by market cap, rose above $3,800 on Wednesday for the first time since May

Bitcoin rose above $50,000 Thursday for the first time since Aug. 23, ahead of the Sept. 7 deadline for the cryptocurrency to become El Salvador's legal tender.

At last check the cryptocurrency was trading at $49,970, up 5.2% during the past 24 hours, according to data provider Messari.

The news came after ether , the second largest cryptocurrency by market capitalization, rose above $3,800 on Wednesday for the first time since May, when its price reached an all-time high. Ether reached $3,844 late Wednesday, according to Messari. The cryptocurrency recorded a 6.9% gain over the past 24 hours, recently trading at $3,781.

From the technical analysis perspective, as bitcoin hits $50,000, it could break $58,000 "in no time", Travis Kling, founder and chief investment officer at Ikigai Asset Management wrote on Twitter. "Then it's a battle for new ATHs (all-time highs) and potentially beyond," he wrote.

Willy Woo, an on-chain bitcoin analyst, wrote on Twitter that "breaking 50 likely a fast track to 60," as investors have been in accumulation according to on-chain data.

Bitcoin has recently seen relatively low activity and volatility in trading, which could help build "sustainable prices rallies," Matthew Blom, global head of sales and trading at crypto exchange EQONEX, wrote in a Tuesday note.

The market is expecting increasing activity and volatility entering September, as traders come back from summer vacations and return to their desks.

In contrast to the price rally, bitcoin's market dominance, measured by dividing bitcoin's market cap by the total market cap of cryptocurrencies, stood at 42%, down from a local high of 74% in December 2020, and above the all-time low of 35% in January 2020, according to market data provider TradingView.

Smart contract blockchains such as Ethereum and Solana have been capturing increasing market share, while decentralized finance protocols and non-fungible tokens have seen explosive growth.

"It is fair to say BTC is relatively under-owned ATM," Kling wrote. "Should BTC go a heater to $58k in coming weeks it will be interesting to watch whether Alts (altcoins) lag, keep up or outperform."

-Frances Yue

 

(END) Dow Jones Newswires

09-02-21 0931ET

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