Another day, a new all-time high for Bitcoin.
The benchmark cryptocurrency continued its uptrend towards the European session on Wednesday when its price surged above $ 51,700 for the first time in history. Meanwhile, market capitalization rose to over $ 960 billion, just 3 percent less than $ 1 trillion.
“We should reach $ 2 trillion this year,” said Ronnie Moas, founder of Standpoint Research, after the rally. “The price target for 2021 is $ 112,000.”
Fundamental bitcoin boom
Traders raised their bids in the cryptocurrency market after Nasdaq-listed software intelligence company MicroStrategy announced it would buy $ 600 million in bitcoins by raising money through a debt sale. It already holds more than 70,000 BTC in its reserves, the current value of which is just over $ 3.5 billion.
Bitcoin already surged higher after Tesla, a Fortune 500 company, announced it had $ 1.5 billion worth of BTC in its reserves. The US automaker has also sparked positive speculation in the Bitcoin market after announcing that it might buy more cryptocurrency and even accept it as a payment method for its products and services.
Bitcoin is close to a market valuation of $ 1 trillion. Source: BTCUSD on TradingView.com Bitcoin is close to a market valuation of $ 1 trillion. Source: BTCUSD on TradingView.com
The recent spike saw the price of Bitcoin jump 56.07 percent in February and 76.32 percent in March year-to-date. Based on the mid-March nadir of USD 3,858 last year, the cryptocurrency rose 1,188 percent.
Next up or correction?
Many analysts assumed the Bitcoin price surge will continue into the quarterly meeting, with upside targets on social media to be between $ 52,000 and $ 65,000.
$ BTC will rise to 60,000 from her faster than anyone expects
– LilMoonLambo (@LilMoonLambo) February 17, 2021
#Bitcoin Price Breaks $ 50K! Is $ 63K Next for #Bitcoin?
Small market update on $ BTC and #altcoins published here: https: //t.co/l6h3UrBHDW
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– Michaël van de Poppe (@CryptoMichNL), February 17, 2021
However, some analysts also recommended that traders wait for a confirmed breakout before extending their long position targets. A pseudonymous analyst noted that Bitcoin’s recent uptrend has passed a critical short-term resistance level, but this does not guarantee further parabolic movement.
Bitcoin needs to confirm the resistance trendline as new support to confirm a breakout as presented by the Crypto Cactus. Source: BTCUSD on TradingView.com Bitcoin needs to confirm resistance trendline as new support to confirm a breakout, as depicted by the Crypto Cactus. Source: BTCUSD on TradingView.com
“Imagine you can handle this now [that the] The price shows a clean breakout of this important trend line resistance, ”the analyst stated. “We should technically expect that retesting at some point on this trendline will confirm that it has been tipped into support before getting much higher in the macro.”
Meanwhile, Bitcoin entered an overbought zone on its daily timeframe chart as measured by the Relative Strength Index. This indicates an imminent downward correction / consolidation in the upcoming sessions.
