Another day, another high point for Bitcoin
The benchmark cryptocurrency continued its bullish trend towards the European session on Wednesday, with its price rising above $ 51,700 for the first time in history. Meanwhile, its market capitalization rose to more than $ 960 billion, just 3% before reaching $ 1 trillion.
“We are expected to reach $ 2 trillion this year,” said Ronnie Moas, the founder of Standpoint Research, after the rally. “The target price for 2021 is $ 112,000.”
The fundamentals of the Bitcoin boom
Traders increased their offerings in the cryptocurrency market after Nasdaq-listed software intelligence company MicroStrategy announced that it plans to buy $ 600 million in Bitcoin by raising funds through a debt sale. It already has more than 70,000 BTCs in its reserves, the current value of which is just over $ 3.5 billion.
Bitcoin was already rising after Tesla, a Fortune 500 company, revealed that it has $ 1.5 billion in BTC in its reserves. The U.S. automaker has also raised speculation high in the Bitcoin market after announcing that it can buy more cryptocurrency and may even begin to accept it as a payment method for its products and services.
Bitcoin is close to reaching a $ 1 trillion market valuation. Source: BTC / USD at TradingView.com
The most recent spike brought the price of Bitcoin to a gain of 76.32 percent over the year. Measured from its $ 3,858 fund in mid-March last year, the cryptocurrency was up 1,188 percent.
Even more to the top or correction?
Many analysts anticipated that the Bitcoin price hike would continue into the quarterly session, with bullish targets ranging from $ 52,000 to $ 65,000 across all social media.
$ BTC is going to 60k from her quicker than anyone expects
– LilMoonLambo (@LilMoonLambo) February 17, 2021
“$ BTC goes to 60k faster than anyone expects”
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– Michaël van de Poppe (@CryptoMichNL) February 17, 2021
“The price of #Bitcoin exceeds $ 50,000! Is $ 63K the next step for #Bitcoin? ”
However, some analysts have also recommended that traders wait for a confirmed breakout before extending their long position targets. A pseudonym analyst noted that Bitcoin’s latest bullish move pushed it to a crucial short-term resistance level, but that does not guarantee further parabolic movement ahead.
Bitcoin needs to confirm the resistance trend line as new support to confirm a breakout, as presented by Crypto Cactus. Source: BTC / USD at TradingView.com
“Imagine being cut out of it, now [que o] price is showing a clear break from this key trendline resistance, ”said the analyst. “We should technically wait for a new test at some point in this trend line to validate that it was reversed for support before moving up much further in the macro.”
Meanwhile, Bitcoin has entered an overbought zone on its daily schedule chart, according to the Relative Strength Index readings. This points to an impending downward correction / consolidation in the coming sessions.