On Wednesday, February 17, Bitcoin hit a new
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.
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:
$50,000 #Bitcoin is the new normal.
— Samson Mow (@Excellion) February 17, 2021
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
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