Commodity News

Bitcoin rejected an all-time high of $48,000 before falling back to support above $43,000. The surprising quick rise to $48,000 rallied after the world’s largest electric vehicle manufacturer, Tesla purchased $1.5 billion worth of BTC. At 10:29 GMT on Thursday, the flagship cryptocurrency was trading at $44,997, losing 3.97% in the last 24 hours.

If the support levels above $40,000 become harder to secure, the cryptocurrency may free fall to lower levels in the coming days.

BTC/USD trading chart

The support levels around $38,000 were important in the recent run-up from $30,000. It seems that this support level is likely to absorb the selling pressure and stop the declines.

The Moving Average Convergence Divergence (MACD) suggests that the least resistance path is downward. The MACD identifies exit positions and buy the bottom entry points. At least for now, the MACD line (blue) is below the signal line. This is a strong indication to avoid entries and sell.

While it’s not possible to predict how far it will go, a downtrend of Bitcoin is likely to continue in the near term. On the 4-hour chart, the 100 Simple Moving Average has crossed the 200 Simple Moving Average. This may also mean that the pioneer cryptocurrency may totally ignore the bearish call and continue an uptrend towards $50,000 and beyond.

In addition, on-chain metrics and fundamentals have continued to improve in the past few days. The USDT stablecoins spiked as Bitcoin active addresses immediately surged simultaneously.

Popular crypto analyst Joseph Young writes:

Big Bitcoin pullback overnight. Some delays to $50k. Slow and steady it is. Stablecoin inflows are still high and the futures market is less heated

At the current BTC price, the market is less leveraged. A sharp correction or volatility will not be visible in the near time.

Plan B insists on $100k

As the market battles on, the author of stock-to-flow model Plan B has insisted that $100k Bitcoin price is imminent anytime between April and September 2021.

#bitcoin on track for $100K between April and September pic.twitter.com/Q6BOb2FrGZ

— PlanB (@100trillionUSD) February 10, 2021

This is possible considering the impact Tesla’s entry into the market might have on other big corporates who may now begin to consider putting some of their cash reserve into Bitcoin. Twitter, Apple, and Oracle are primed to join the market soon. Visa and Mastercard have also recently announced that it will be allowing payments in Bitcoin and other cryptocurrencies later this year.

Many analysts believe that Bitcoin would become a de-facto asset in the corporates’ balance sheets.

Michael Saylor, the CEO of MicroStrategy said:

Bitcoin is engineered to convert your balance sheet from a liability to an asset. It’s a million times better than gold; it moves at the speed of light, more than 100 million people are using it now and approaching 1 billion users in five years, with millennials leading the way.

It looks like Bitcoin is having its best year yet.

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