Bitcoin is returning to the $58,000 resistance level after a short drop

Mohammed Abdelkhalik
May 7, 2021
Cryptocurrency trading

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Bitcoin Outlook – 8th May 2021

Bitcoin has struggled to hit the $58,000 resistance level until Monday this week, after recovering from a sudden drop in late April.

Last Monday, the price started to decline again as it fell to $ 53,000 per currency, however, the price rebounded again on Wednesday, May 5th to witness a sharp rise, returning to the $ 58,000 level, but it failed to continue its bullish momentum to fall on Thursday above The level of $ 56,000.

Within just one week, the Bitcoin price recovered to $ 58,000, decreased to $ 53,000, and then returned to $ 58,000 again, and this indicates that the currency appears determined to break through the resistance, and there are many positive events that push it higher.

Bitcoin vs US Dollar chart - 7th May 2021

Bitcoin adoption is increasing at a rapid pace

There have been many reports making the rapid recovery of Bitcoin’s price and the desire to rally quite understandable. For example, NYDIG, a fintech company, has confirmed its belief that the leading digital currency will be accepted by hundreds of US banks before the end of the year, as the banks will operate. This happens, especially since banks are starting to notice that all the money will go to the Coinbase exchange, and they want to get a part of the digital currency gains.

Moreover, Bitcoin and Ethereum recently succeeded indirectly entering Wall Street as global indices, which is definitely a reason for the price rise. Finally, the rise in prices of the leading digital currency has inspired a lot of Asian companies to accelerate the shift of their attention to it.

During the past seven days, the price of Bitcoin rose from $ 53,634 to $ 58,845, but this sudden rise after the $ 58,000 resistance backfired, pushing the currency down to $ 53,000.

On Wednesday, the currency recovered to nearly $ 58,000, and it seems that it is trying desperately to grow and reach the expected high of $ 80,000 per currency by the end of this quarter, but it failed and quickly fell on Thursday to about $ 56,500, and yet there is still room. The time has passed for the currency to reach its target by the end of the second quarter, but so far it is still far from its target.

PayPal’s earnings exceed expectations

Dan Shulman, CEO of the payments giant PayPal, promoted cryptocurrency after the company’s exemplary performance in the first quarter of this year. Shulman indicated that PayPal’s transactions in cryptocurrencies helped the company pay its profits higher than expected. Reportedly, net profits rose. The company is only in the first quarter of 2021 to $ 1.08 billion from only $ 83.89 million.

According to the report, PayPal’s earnings per share were $ 1.22, exceeding expectations of $ 1.01 per share, and the company’s revenues exceeded previous expectations of $ 5.8 billion to reach $ 6.03 billion. In addition, the company’s total payments volume reached $ 285.22 billion, exceeding expectations of $ 264.6 Billion.

Moreover, PayPal added about 14.5 million new active users during the past year, bringing the total user base to 392 million users, and the company’s revenue increased by 31% year-on-year due to the Covid-19 pandemic, which caused an increase in online shopping.

However, Schulman believes that most of the growth came after the introduction of cryptocurrency on its platform, and revealed that half of the crypto users who use PayPal open their app daily, and to that end, he concluded that cryptography encourages dealing with the app.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.