The Bitcoin price was on a strong bullish rally over the weekend, hitting a fresh multi-month high. The BTC price has been hovering over the key resistance level of $50,000 for the past 24 hours. Bitcoin has jumped 7.93% in the last seven days. The volume of Bitcoin traded in the last 24 hours has jumped more than 18% to $36.35 billion. Its total market capitalization currently stands higher at $965 billion.
Crypto Market Rebounds
According to data by CoinMarketCap, the overall cryptocurrency market has been on a strong rally. The global crypto market capitalization has jumped from $1.57 trillion in the past month to $2.34 trillion.
Cryptocurrencies have a close correlation to Bitcoin, hence the rise in the Bitcoin price boosted most cryptos. Some of the best performing digital currencies in the market include Ethereum, Solana, Polkadot, Chainlink, XRP, Litecoin, Filecoin, among others.
Among the key catalyst behind Bitcoin’s rally is the weak US economic numbers. According to data released on Friday, the nonfarm payrolls for August increased by 235,000. This was lower than the Dow Jones estimate for a 750,000 increase.
The weak employment figures signaled a slowdown in the US labor market growth. With the slow growth, the Federal Reserve may be forced to rethink its decision to taper its monetary policy, which is a good thing for digital assets.
Analysts have also linked the BTC price rally to El Salvador’s adoption of the crypto market leader. El Salvador is set to launch Bitcoin as its legal tender on September 7. El Salvador has begun installing Bitcoin ATMs to allow citizens to convert the token to US dollars.
Bitcoin Price Analysis
The daily chart shows that the Bitcoin price has been on a bullish upward trend. The BTC token hit an intraday high of $52,188.80 before pulling back to $51,443. It is moving above the 25-day and 50-day exponential moving averages. It is also trading above the 50-day moving average.
Therefore, the price is likely to continue with its bullish trend as the bulls target the next resistance at $52,000.