Bitcoin Eyes $50,000 amid Whale-led Supply Crunch; Here’s Why

KBFYg9lc 980x568

Bitcoin could hit $50,000 in the coming sessions as more and more institutions accumulate it against their fears of dollar-linked inflation. The flagship cryptocurrency, whose market capitalization recently soared above that of Facebook and Tesla, dropped lower from its record high near $42,000. Nevertheless, its plunge prompted rich traders and institutions to purchase it at cheaper rates, leading to further liquidity crunch against its limited supply cap of 21 million tokens. As a result, the bitcoin price is mostly consolidating sideways, forming a structure that looks like a Symmetrical Triangle. In retrospect, the said pattern develops when the price forms higher lows and lower highs. Meanwhile, the trading volume drops. Ultimately, the price breaks out in the direction of its previous trend—upward or downward. Bitcoin’s previous trend was bullish. Therefore, the cryptocurrency’s possibility of notching another upside run is higher on its breakout move out of the Triangle pattern. That…

Read the original article here

IF YOU LIKED THIS ARTICLE CLICK SHARE