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Bitcoin Chartists See Price Hitting $70,000 After Tesla Crypto Purchase

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Yashu Gola



Calls for a $70,000 Bitcoin is picking momentum among technical market analysts as the cryptocurrency makes way into Tesla’s balance sheets.

Cheds, an independent cryptocurrency analyst who enjoys a massive following on Twitter, saw the BTC/USD exchange rate rising by at least 70 percent in the coming sessions. “Just an observation,” he said while citing a fractal-like Relative Strength Indicator for his bullish analogy, adding that whenever the indicator enters into a “power zone,” it sends the Bitcoin prices higher.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin RSI fractal indicates a rally ahead of 70-100 percent. Source: BTCUSD on TradingView.com

The “zone” represents the overbought areas in the chart above. An RSI reading above 70 shows Bitcoin in an exceeding valuation area that typically amounts to a sell-off. However, in the last two breakouts above 70, the cryptocurrency overstayed its welcome above 70, which led the spot price higher by 70-100 percent.

“Based on this theory, the [bitcoin] price should hit about 70k before cooling off, sometime in the next 3-4 weeks,” said Mr. Cheds.

Tesla Speed

The outlook appeared as Bitcoin established a new record high on Tuesday, hitting levels above $47,500 for the first time in its twelve-year lifetime. Traders flocked into the cryptocurrency market a day after American carmaker Tesla announced that it had purchased $1.5bn worth of Bitcoin as “alternative reserve assets” to their cash holdings.

In its filing with the Securities and Exchange Commission, Tesla said it plans to buy more Bitcoin in the future and—maybe—even enable its use as a medium of payment for its products and services.

The announcement has spurred analysts to make aggressive bullish calls on Bitcoin. Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, said Monday that the cryptocurrency’s price would reach $50,000. Some think it could even cross a $100,000 should rich corporate houses take cues from Tesla and buy Bitcoin.

That appears to include Mitch Steves, an analyst at the Royal Bank of Canada, who anticipate Apple to become the next big buyer of the decentralized cryptocurrency—or even if it starts offering a crypto wallet or exchange service like PayPal did in October.

Bitcoin At $75K

Meanwhile, analysts at TradingShot, an independent market analysis firm, think Bitcoin will hit $75,000. They cite a so-called LMACD bullish cross for their upside analogy.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin eyes a bull run towards $75,000, as per TradingShot analysts. Source: BTCUSD on TradingView.com

“Even the $75,500 target of a potential +98% surge would be quite realistic within a 2-month time-frame, as it would hit the 2.5 Fibonacci extensions,” TradingShot explained with the graph above. “The only Fib extension of the Fibonacci Channel that hasn’t been hit on +0.5 intervals (see how 1.5 and 2.0 have been already hit).”



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Bitcoin traders worry as BTC price remains pinned below $50K

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Cointelegraph By Allen Scott

The price of Bitcoin (BTC) has failed to break above the psychological $50,000 resistance going into the weekend and has dropped below the $48,000 level on March 6. 

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

Now traders are watching whether BTC/USD can break above the $50,000 level to resume the bull cycle. Conversely, a drop below the recent lows below $46,000 will likely open the door to new lower lows, which may then pose a threat to the bull run that has been in place for almost a year, at least in the short to medium term. 

Pseudonymous trader Rekt Capital pointed out similar price levels to watch. If BTC fails to hold the current levels above $46,000, the trader expects Bitcoin to bottom somewhere in the area between $38,000 and $45,000 despite Bitcoin posting higher lows in recent days. 

“BTC higher lows hold until they don’t,” he wrote. “Each subsequent reaction from the January HL was lesser and lesser. Could be the same now. Better to be safe than sorry by preparing for a potential breakdown from this HL.”

One major factor that’s likely causing the current downward pressure on price is an uptick in whales’ activity. Data from CryptoQuant shows an increase in large transactions to exchanges on March 6, though miners’ activity remains relatively low. 

As shown in the chart below, previous upticks in whales moving funds to exchange coincided with drops in Bitcoin price on March 3-4.  

Whales (blue) vs. Miners (orange) vs. BTC price (red). Source: CryptoQuant

Macroeconomic headwinds for Bitcoin

As Cointelegraph reported, Bitcoin is also facing downward pressure from macroeconomic headwinds. A sharp spike in 10-year U.S. Treasury yields and a pullback in tech stocks, in particular, are weighing on cryptocurrency prices as investors flee risk-on assets.

Meanwhile, the Dollar currency index, or DXY, has broken through technical resistance, hitting the highest levels since November 2020. 

BTC (blue) vs. DXY (orange). Source: Tradingview

Cointelegraph Markets analyst Michael van de Poppe points out that Bitcoin’s downtrend remains intact after the latest attempt to break $50,000 failed. 

“This means that the trend is still down and overall weakness on the markets in the short term,” he explained. “$50,000 is so far a no-go for Bitcoin.”

However, Bitcoin, as well as gold, may see some respite soon as the DXY and Treasury yields are nearing their own technical resistance levels.  

“I believe that the yields are getting topped out relatively soon including the DXY,” explained van de Poppe. “Both are in resistance areas, which means that we should be close to a top formation on these two, but also on a bottom formation for Bitcoin and gold relatively soon.”

He added: 

March is often a bad month for markets and history repeats itself. So macro-wise, we’re still bullish on the cycle and heating up for continuation, despite the recent interest in yields.”