Bitcoin clips $58K as Dogecoin stalls and adoption news fuels bulls

Bitcoin clips $58K as Dogecoin stalls and adoption news fuels bulls

Bitcoin (BTC) touched $58,000 on May 6 as the latest phase of its comeback seemed to come at the expense of altcoins.

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

Bitcoin claws back lost limelight

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD return to battle familiar resistance near old all-time highs on Thursday.

The move builds on strength from earlier in the week. As Cointelegraph reported, Wednesday saw $57,000 and 5% daily gains.

As analysts began to note, however, altcoins are facing increasing pressure from a newly-invigorated Bitcoin, which just days before had itself been left in the shade by their performance.

Thursday thus saw 4.4% growth on BTC/USD, while Binance Coin (BNB) and Dogecoin (DOGE), previously the week’s high flyers, were both flat.

Other altcoins did manage to deliver impressive returns and beat Bitcoin on the day, notably Cardano (ADA) and Bitcoin Cash (BCH), which were up 16% and 22% respectively at the time of writing.

“Good start of the day: both ETHUSD and BTC bouncing from the expected levels,” popular trader Crypto Ed summarized about the state of the market.

The largest cryptocurrency thus again faced final resistance beginning at just under $60,000. 

BTC/USD buy and sell levels (Binance). Source: Material Indicators

Bank BTC adoption strikes a chord

Bitcoin had benefited from a major U.S. bank adoption announcement, which was followed by news that the largest e-commerce company in Latin America, MercadoLibre, had added $7.6 million of BTC to its balance sheet.

“As part of our treasury strategy this quarter we purchased $7.8 million in bitcoin, a digital asset that we are disclosing within our indefinite-lived intangible assets,” a filing with U.S. regulator the Securities and Exchange Commission (SEC) confirmed.

There are now six companies with at least $11.4 million in Bitcoin on their balance sheets, corresponding to at least 8,027 BTC. MicroStrategy, which only entered the market last August, is still by far the largest player with over 91,000 BTC.

editorial staff