BTC is on its way to hit $50k this week

6 min readSep 4, 2021

The Bitcoin market has been on a roller coaster ride for the past few months. This week, we saw more fluctuations in prices as well as some major developments that could have significant implications. In this post, we will discuss what is going on with Bitcoin and where it might be headed in the future!

The question is: can we expect to see another surge? Many people are waiting for a repeat of the historic Bull Run which brought Bitcoin from about $800 in 2016 to over $19,000 by mid-December 2017. In fact, some even believe that it could go as high as $50,000 this year. Whether or not that will happen is another matter entirely; however, one thing’s for sure — it certainly seems like the right conditions are being put into place!

Major developments

This week has seen developments in a few key areas which could contribute to future Bitcoin price movements: regulation, infrastructure, and mainstream adoption. Read on to find out more about what’s going on, and why it could be just the beginning of a new surge in Bitcoin adoption.

Bitcoin is still feeling the effects of South Korea’s “cryptocurrency crackdown” which was announced earlier this year. This has led to some huge price drops — over $13k in just one day — as well as some negative publicity. However, it looks like things are finally starting to turn around for the country’s cryptocurrency exchanges; in fact, Bithumb is now planning a massive recruitment drive that could bring on thousands of new employees!

This move comes not long after another major Korean exchange — Coinone — joined a global payment network set up by Ripple, which should help to improve transaction speeds and efficiency.

Wide adoption

The big increase in the number of people using cryptocurrencies continues, with massive new investment from Peter Thiel as well as rumors that Facebook could be about to launch its own offering. In fact, there are so many companies interested at this point that it almost seems like the market is saturated!

Although this could be seen as a bad thing from some angles, it does mean that we are edging closer to mainstream adoption (which should also contribute significantly to price increases). In fact, there’s even been talk of Bitcoin ATMs being installed in Starbucks cafes in the US — could you imagine buying your daily coffee with cryptocurrency?

We have also seen some developments in the infrastructure of BTC itself. For example, there has been a significant update to one of Bitcoin’s core software packages — libsecp256k (used for validating transactions). This should help to reduce transaction fees as well as improve security and make it easier to process large volumes of data.

It’s been a while since we saw some good news for Bitcoin, and it seems that now might just be the time! We will have to wait and see if $50k BTC is on the cards; however, considering how positive things seem at this point in time — anything really could happen over the next few months!

One of the key things to remember about Bitcoin is that it’s still in its infancy, and we are yet to see its full potential. It seems clear that there will be a lot more developments in terms of regulation, infrastructure, and mainstream adoption. Will this lead us towards $50k BTC? We can only wait and see!

Stocks are set for a further surge, as the dollar is on its way down

On the back of comments from Fed Chair Jerome Powell, stocks hit fresh all-time highs last week. The strength of the US dollar took a dive, and the USD currency index (DXY) began a multi-day slide.

Bitcoin is good when the market is good. The market needs to be better for Bitcoin to do well. Powell was not as negative in his speech as people thought he would be.

Bulls are kept in check by resistance

Saturday and Sunday were far from dull for Bitcoin traders, with two surges above $49,000 providing them optimism for the “big showdown” against the $50,000 barrier.

In the end, the prices were too low so both attempts failed. The BTC/USD price has been in a range from $40,000 to $49,500.

On Monday, the situation remains unchanged, with $47,000 once again on the table for support. “Bullish on Bitcoin above $51K until then just noise,” Cointelegraph contributor Michaël van de Poppe summarized as the weekend came to a close.

Others are predicting that buy-side strength may yet collapse in the short term, perhaps to produce lower support retests, according to a recent analysis.

“BTC is still attempting to hold this red region as support, which is causing the price to become increasingly volatile on downside wicks below it,” trader and analyst Rekt Capital noted.

“The downside has been bought up successfully thus far but this blue down-trending resistance continues to weigh down on price.”

The hash rate retested the April dip zone this week

It’s a scenario that could play out in other cryptocurrencies beyond spot price — fundamentals are also slowing their rapid expansion. After a stunning 13.2 percent upward difficulty adjustment the previous week, Bitcoin is now looking at the next being essentially flat, with less than 1% expected to be added over the coming weeks.

This may turn negative, which means it would be a pause for thought among miners. They have been returning to the network lately. But if difficulty increases, that would seal the second run of four upward difficulty adjustments in a row for 2021.

The hash rate stayed at elevated levels throughout the week, approaching 125 exahashes per second (EH/s). Since July, the hash rate has bounced back extremely effectively, and it is now only 40 EH/s from all-time highs.

More good news for Bitcoin bulls is that current levels resemble the brief lows observed after April’s all-time highs for BTC/USD. The hash rate then rose to new records before the China panic began. “Bitcoin’s hash rate has already returned to those seen in November 2020,” tweeted Anthony Pompliano last week, even more enthusiastically.

“It wouldn’t surprise me to see a new hash rate all-time high by end of year.”

Taking a closer look at the chances of reaching $50,000

What are the chances that a $50,000 attack by bulls becomes the defining market characteristic this week? As Cointelegraph reported, Friday’s release of U.S. employment data may already be the catalyst for a Bitcoin comeback.

The ingredients for it to happen are already in place — neutral financing rates across trading platforms, as well as an increasing supply of stable coins, which recently hit $19 billion.

“Since the sudden rise of US$1.8 billion in a single day on August 24, centralized exchange stable coins have surpassed 19 billion for a week,” according to on-chain analytics firm CryptoQuant, which cited data from CoinGecko.

According to the report, major stable coins have seen an upswing in trade volumes over the past week, with Tether’s (USDT) market share increasing by 28% in the previous five days. In addition, Charles Edwards of Capriole Investments said that Bitcoin’s reduced dominance of 44%, which is now at a bull trigger-in-sight level of 40%, was a sign that the market’s bearish trend has ended.

Final Thoughts

It’s all up for grabs as price action continues to get more chaotic day by day, with some expecting the inevitable breakout before year-end but others warning against buying sentiment at this juncture.

The current outlook remains largely unknown until proven otherwise — and it may not be long now given today’s early rally in fiat markets across the board.

Market watchers are being cautious after seeing several failed breakouts over May/June only to fade into lower lows later on. Some still believe there will be another one which could take prices right above last week’s high.

Source: Cointelegraph News