Commodity News

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, soft commodities, and Bitcoin

Archives

Bitcoin Hits a New High of $51.3K, Entering Uncharted Territory

February 17, 2021 at 10:33 by Ibrahim Anifowoshe

On Wednesday, February 17, Bitcoin hit a new all-time high of $51,200, passing the $50,000 resistance level and psychological barrier to establish itself in uncharted territory.

Earlier on Tuesday, the king cryptocurrency had broken past the psychological barrier of 50,000 for the first time in Bitcoin history. But the coin quickly fell minutes after before it could hold on to $50k.  With this new rise, the coin is now in a “parabolic advance.” The fourth time in the twelve year history of the king cryptocurrency.

bitcoin at $51.2k

Peter Brandt confirmed that the coin is now in a  “parabolic advance” in a tweet:

Big picture BTC Bitcoin is undergoing its third parabolic advance in the past decade, A parabolic advance on an arithmetic scale is extremely rare — three on a log scale is historic.

Dan Held, Kraken’s growth lead noted that if counting its initial phase prior to 2012, there have been four parabolic advances.

Brandt noted that if this advance is violated, a correction of about 80% should be expected. A bearish consequence as was observed in 2018 after Bitcoin peaked at near $20,000. After this advance was violated, the coin fell to $3,100 a year later.

Indicators pushing the bulls

From current standpoints, it’s clear that Bitcoin is far from violating the uptrend. It’s clear that Bitcoin is at the start of its bull run, not the end.

Blockstream CSO, Samson Mow declared on Wednesday:

According to the head of trading at BlockTower Capital, Avi Felman, MicroStrategy’s announcement of a plan to purchase $600 million BTC was to trigger Bitcoin into breaking the psychological barrier of $50,000. On December 7, 2020, the firm made a similar announcement that forced Bitcoin to break the major hurdle of $20,000. The business intelligence firm has been buying bitcoin since August 2020 and is sitting on a profit of more than $2 billion on its holdings.

Popular Twitter account Documenting Bitcoin added:

If you think $50,000 a bitcoin is expensive, wait until you hear that the government is about to print $1,900,000,000,000 out of thin air

Considering that the US bond yields are rising and gold is falling, it’s not yet clear that the move above $50,000 is sustainable. At 10:14 GMT on Wednesday, Bitcoin was trading at $51,249, a 4.27% gain in the last 24 hours.

However, bond yields may be limited. The Federal Reserve open-ended bond purchasing program and possible rise of inflation from surging oil prices may likely put Bitcoin in a good place as a hedge against inflation.

If you have any questions and comments on Bitcoin today, use the form below to reply.

Leave a Reply

required
required  

Navigation

Menu