Bitcoin breaks $51k resistance, here’s why its key to the next bull run

Prashant Jha
December 27, 2021
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Coinbase Data Signals Institutional Investors Buying Bitcoin Again

Bitcoin (BTC) has been hovering under the key resistance of $51K for the past week despite the market sentiments growing bullish in the holiday season and earlier today it finally managed to breach it. The top cryptocurrency is trading at $51,088 at the time of writing with a 3% increase over the past 24-hours.

Bitcoin
Source: TradingView

After an eventful first quarter of 2021, the crypto market registered two massive market corrections of over 50% during the second quarter. However, things started to look bullish again with October as BTC and several other altcoins hit new all-time highs, but November and December turned bearish again.

BTC is now looking to gain back some bullish momentum towards the end of December mimicking the start of the bull season last year. The circumstances also seem quite similar since COVID’s new variant omicron along with growing inflation and financial stability could again make Bitcoin the go-to store of value.

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Will Bitcoin see a supercycle or 2017 like downfall?

The last bull season saw Bitcoin rise to a new ATH near $20K in December 2017. After BTC topped the bull market in December, altcoins surged to new highs in the first quarter of 2018 and then the whole crypto market entered a four-year-long bearish phase.

A lot has changed over the past year as BTC has now become a genuine parallel financial investment market as compared to its status as a “passing fad” and “bubble” in 2017. Most of the institutions watched from the sidelines as retail carried the market for as long as they could. However, institutions have not just adopted bitcoin and other cryptocurrencies in 2021, they got their hands deep with several new government-approved crypto ETFs launching in a number of G-20 nations.

Crypto pundits have admitted that the $100,000 BTC price prediction was a little far-fetched, however, they belive fundamentals and markets have become strong enough to carry the bull run into 2022.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.