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BTC$20 277.35

-2.12%

Ethereum
ETH$1 145.31

-3.04%

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-0.01%

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Bitcoin hits $51K as short-term bull case strengthens


03 Mar 2021

#Bitcoin

The U.S. dollar index (DXY) is showing signs of a short-term top as the price of Bitcoin (BTC) demonstrates signals of a short-term rally. There is a narrative that the price of Bitcoin often coincides with a drop in the value of the dollar. Since stores of value, like gold and Bitcoin are priced against the dollar, theoretically, a downtrend in the DXY would likely have a positive impact on the price of BTC.

As the dollar began to consolidate, Bitcoin broke above $50,000 on March 3, putting it on track to retest the $51,600 resistance level once again. Above $51,600, there is little resistance until $56,000. Hence, breaking past this level is critical to secure upside momentum in the short term. Bitcoin Jack, a semi-pseudonymous trader, who predicted the $3,600 bottom in March 2020, said:

If Bitcoin continues to rally as the dollar stagnates, it could allow BTC to simultaneously benefit from two macro factors. First, the dollar’s decline naturally benefits Bitcoin. Second, the impending $1.9 trillion dollar U.S. stimulus could serve as a catalyst for a broader BTC rally while diluting the value of the dollar. Bitcoin likely slumped in the past week due to the shaky macro climate, as the dollar began to climb and bond yields rose to a yearly high.

If the macroeconomic conditions were the major catalyst for Bitcoin’s downturn, now that bond yields are easing, it could bouy BTC’s momentum in the coming weeks. According to John Cho, the director of global expansion at Ground X, $42,900 was most likely the local bottom for Bitcoin in the foreseeable future. Cho earlier predicted a short-term Bitcoin downturn, expecting a drop to around $40,000 to $41,000. BTC did not drop that low, but it declined to sub-$43,000, almost completing a 30% drop from its local high.

Following the strong recovery of Bitcoin, it is critical for the dominant cryptocurrency to retest the $56,000 resistance area. Above it, the path toward a new all-time high is open, making $60,000 the next likely target.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 56.4% 92 $20 277.35 -2.12% -0.29% $386 889 430 746 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 57.6% 90 $1 145.31 -3.04% 4.85% $138 969 035 870 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.4% 1 $0.998764 -0.01% -0.03% $66 742 331 401 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 90.8% 1 $1.000530 0.03% 0.05% $55 832 163 481 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 56.8% 89 $224.81 -4.04% 4.38% $36 706 159 546 BNB 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 94.8% 1 $1.000787 0.10% 0.21% $17 397 351 213 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 63.2% 80 $0.335982 -2.23% 4.31% $16 242 394 323 XRP 7 days price change
8 Cardano (ADA) ADA Cardano predictions 66% 75 $0.471136 -2.23% 1.44% $15 987 555 258 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 67.6% 66 $35.51 -5.44% 2.11% $12 172 607 058 SOL 7 days price change
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13 TRON (TRX) TRX TRON predictions 58.4% 91 $0.065880 0.37% 2.62% $6 093 590 634 TRX 7 days price change
14 SHIBA INU (SHIB) SHIB SHIBA INU predictions 66.4% 74 $0.000010 -7.02% 4.64% $5 528 798 046 SHIB 7 days price change
15 UNUS SED LEO (LEO) LEO UNUS SED LEO predictions 71.6% 50 $5.75 -1.33% -2.42% $5 482 403 972 LEO 7 days price change

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