The Bitcoin rally was paused after hitting a new record high on Tuesday, suggesting that the supersonic rally in the previous session could save some of its profits.
Bitcoin corrected lower after hitting $ 48,200. Source: BTCUSD on TradingView.com Bitcoin corrected lower after reaching USD 48,200. Source: BTCUSD on TradingView.com
The benchmark cryptocurrency was aiming for its most robust one-day performance in more than three years when its price rose from $ 38,871 on Monday to $ 46,750. The euphoria continued in the Asia session the next day when BTC / USD hit another all-time high of $ 48,200.
Even so, sellers took control at the top, which resulted in a slight decline as the market entered the European session. On the flip side, analysts remain convinced that Bitcoin will soar to $ 50,000 in the upcoming sessions.
$ 50,000 for #Bitcoin
– Michaël van de Poppe (@CryptoMichNL), February 9, 2021
An ordinary bitcoin bull
At the center of their bullish analogy remains the US dollar. First, the world’s leading electric car maker Tesla announced that it holds $ 1.5 billion worth of Bitcoin as “alternative reserve assets” for its US dollar-based treasury, showing that its boss Elon Musk has the greenback for too holding risky to keep it.
The bearish bias against the dollar stems from the prospect of extremely accommodative policies from the Federal Reserve and President Joe Biden’s intention to pass a $ 1.9 trillion stimulus package. A disappointing work report released on Friday further sharpened the potential for expansive government aid, depressing real yields and the dollar in the last weekly meeting.
“While Bitcoin may continue to play in the area in the near future, it is possible that the ‘digital gold narrative’ will pick up again in the second quarter if a new stimulus is passed and the Fed continues to keep rates low through 2023,” wrote Ty Young. Research analyst at the US-based cryptocurrency analysis / data aggregator firm Messari.
The US dollar index breaks bearishly on its ascending channel, increasing the prospect of a negative breakout. Source: DXY on TradingView.com The dollar index breaks on its ascending channel are bearish and increase the prospect of a negative breakout. Source: DXY on TradingView.com
However, he warned of an unexpectedly rapid economic recovery in the US, led by bullish vaccination rates that could weigh on Bitcoin as the government limits incentives and redirects investor focus to the US dollar and government bonds.
“In the past year, Bitcoin has solidified as a macro asset, what to new institutional actors be included. The impact could result in crypto markets trading more similarly than traditional markets, ”Young said, adding that more hedge funds could offer Bitcoin-enabled services.
