After El Salvador adopted bitcoin as its legal tender the cryptocurrency value increased to $50,000. Bitcoin decreased to $47,600 before the spike to $50,300.
Rumor’s about a Bitcoin ETF continues to surge , A bitcoin ETF is one that mimics the price of the most popular digital currency in the world. This allows investors to buy into the ETF without going through the complicated process of trading bitcoin itself, with optimism that the US Securities and Exchange Commission (SEC) will soon approve a futures-based ETF.
Bloomberg ETF Analyst Eric Balchunas said there is a 75% chance that a Bitcoin futures ETF will be approved this month. This approval of a Bitcoin ETF is seen as another step for cryptocurrencies to become a mainstream in the financial market asset.
As bitcoin trades above $50,000 analysis of trendline resistance are currently being computed around its current level of $50,300.
Upside traders will now focus on September which will be around $52,900. Cryptocurrency specialists are currently calling for bitcoin to test its all time highs around $65,000 in weeks to come.
If Bitcoin fails to hold gains above $50,000 then the door may be open for another small correction. If that is the case, then the 18th September high around $48,800 could act as support.
After that, the 50-day moving average at $46,800 and the 200-day moving average at $45,000 will likely be the next levels to watch out for.