The Bitcoin (BTC/USD) price launched higher on Monday as the consolidation phase came to an end. The coin jumped to more than $51,000, pushing its total market capitalization to more than $972 billion. As a result, the combined market cap of all cryptocurrencies tracked by CoinMarketCap jumped to more than $2.33 trillion.
Cryptocurrencies rebound
After two weeks of consolidation, the price of Bitcoin and other cryptocurrencies rebounded in the overnight session. While BTC jumped to more than $51,000, other popular digital currencies rose as well. Ethereum rose to more than $3,900 while Cardano and Solana rose to more than $2.90 and $142 as well.
There were several key catalysts for the latest Bitcoin price rally. First, on Friday, the US published relatively weak economic numbers. The data showed that the country’s economy added more than 235k jobs in August. This was substantially lower than the median estimate of 750k and was the lowest figure in months.
The US jobs numbers signalled that the labour market growth was easing. Still, other numbers showed that the economy was doing modestly well. For example, the unemployment rate declined to 5.2%, the lowest level since the pandemic started. At the same time, wages grew by 4.3% while the participation rate remained at 6.7%.
Still, the slower additions meant that the Fed will likely have a wait-and-see attitude before starting to tighten. In his statement at the virtual Jackson Hole Symposium, Jerome Powell said that that the Fed would likely watch over the impact of the Delta variant before tightening.
Second, the BTC price rallied as optimism among traders remained steady. Besides, the price has managed to rise from below $30,000 in the past few months to more than $50,000. Therefore, the recent consolidation was a calm-before-the storm in the industry.
Bitcoin price forecast
The four-hour chart shows that the BTC price managed to break out during the evening session. The coin’s price jumped above the key resistance level at $50,537, where it struggled moving above before. It also rose above the key 25-day and 50-day exponential moving averages (EMA) while oscillators like the Relative Strength Index (RSI) have been relatively positive.
Therefore, with the breakout done, the coin will likely maintain the bullish trend as bulls target the key resistance at $52,000.
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