Bitcoin is Flirting with $50K ($BTC)
Etherum ($ETH) is pushing to new all-time highs. However, Bitcoin ($BTC) maintains a commanding lead in terms of market cap and sway over the crypto market.
The $50,000 price level provided strong resistance last week, but now Bitcoin is fast approaching another test of that level.
Although recent price action suggests some similarities to the 2017-2018 bull cycle, a chart plotting Bitcoin’s Purchase Intent Mentions against the price reveals immense relative strength in 2021.
It’s been a little over 4 months since BTC reached it’s 2021 ATH ~$63,000. And, its near-term outperformance vs the prior bull cycle can be quantified:
- Since the 2021 ATH price, BTC Demand has risen +1% on a 90-day moving average — BTC Demand had already declined -37% in the 4 months following the 2017 high.
- In 2021, BTC’s price fell roughly -53% from the ATH, and has since bounced more than +66% from those lows — In 2017, BTC sold off by -66% from the ATH, with a max gain of +49% in the resulting bounce.
Bitcoin is still showing strength, and a clean break above $50,000 would be a bullish indicator for the entire crypto market.
