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Bitcoin Needs to Break $51K Level for an Continuous Upsurge

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Bitcoin (BTC

) roared above $50K on August 23 for the first time since May as institutional investors give the leading cryptocurrency a keen eye. Nevertheless, BTC has retracted to $49,738 during intraday trading, according to CoinMarketCap.

Market analyst Michael van de Poppe believes Bitcoin should break the $51,000 level if an upward momentum continues, failure to which a pullback to the $44-$48K level will be witnessed.

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He added that at a fast pace, BTC ought to accelerate to the $56K level. 

With the latest surge pushing Bitcoin above $50,000, on-chain dynamics have changed as more users accumulate. On-chain metrics provider Econometrics explained:

“Good news. Compared to February, when Bitcoin crossed $50K for the first time, the on-chain dynamic has changed. In February, less and less people were accumulating. Now, more and more people are accumulating.”

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Institutional investor sentiment rises

Institutions have been injecting capital investments in the Bitcoin market, which has been instrumental in increasing price. Recently, addresses holding more than 1,000 BTC reached a 6-month high, which illustrated strong conviction.

In May, Bitcoin experienced bearish momentum as the top cryptocurrency nosedived to lows of $28K from an all-time high (ATH) price of $64.8K recorded in mid-April.

Institutional investment played a pivotal role in the realization of this record-breaking price.

Meanwhile, Bitcoin experienced the largest exchange inflows and outflows on August 23 since BlackThursday in March last year. Crypto analytic firm Santiment stated:

“Monday had the largest amount of Bitcoin cycling on & off exchanges since BlackThursday, 17 months ago. Approximately 843.2K BTC was moved on to exchanges, and 825.0K BTC was moved off.”

Black Thursday is a day remembered because the financial market suffered the greatest single-day fall since the 1987 stock market crash as the coronavirus

 (Covid-19) pandemic continued to wreak havoc globally. For instance, BTC shed off 50% of its value and plummeted to lows of $3,800. 

SOURCE BITCUBE, Inc.

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