The price of Bitcoin (BTC) has risen steadily over the past few weeksand reaches his last new high of around USD 57,500 on February 20th.
There was more bullish news like that this week first listed company in Germany to move its cash reserves to BTC, just like him Launch of the first Bitcoin ETF in Canada, whose trade exceeded $ 220 million on its debut.
Just for a day
– Elon Musk (@elonmusk) February 19, 2021
Just for a day
News like this is driving the price of Bitcoin soaring, while Elon Musk has also accepted the latest “Laser Eye” meme, to the delight of Hodlers hoping for a Bitcoin price of $ 100,000. Yet, The next major point of interest is around $ 63,000 and could be reached relatively soon if Bitcoin can hold above some key support levels..
Bitcoin price continues to rise as it maintains critical levels
Bitcoin’s four-hour chart shows a clear bullish trend since he abandoned the construction of the $ 30,000 to $ 42,000 range. Since then, the crucial levels of $ 44,000 and $ 50,000 have been used as support and acted as a launch pad for the current highs above $ 55,000.
This rally is also being driven by falling reserves on the stock exchanges.. This is very similar to what was observed in late 2016 when the sum of Bitcoin withdrawals from exchanges exceeded the amount deposited. These withdrawals suggest that people want to hold their Bitcoin for the long term, which shows strong demand and low time preference.
During the last rally, the first Fibonacci level was hit at 1.618. Now, Bitcoin is approaching the second point of interest at 2,618 Fibonacci around $ 63,000.
On the flip side, the $ 50,000 level on the four-hour chart is crucial. If it offers support, there is a high chance that Bitcoin’s price will hit this level next. Yet, If you lose $ 50,000, it can be expected to drop further down to $ 43,000.
The total market capitalization for cryptocurrencies reaches $ 1.7 trillion
Meanwhile, The total market capitalization for cryptocurrencies is approaching the $ 2 trillion mark this cycle, something that many would not have expected last year.
However, after breaking the 2017 all-time high, the next interest rate level was the $ 1.2 trillion level, which is also the Fibonacci zone of 1.618.
This zone has been broken to the upside and market capitalization is now targeting $ 1.85 trillion, the Fibonacci level of 2.618. The graph also shows a Huge gap between the 21 week MA and the current price, suggesting the rally could spread too far.
Historical, Late February and March were not bullish on the market so a correction should come as no surprise. In this case, a new test of $ 1.2 trillion is definitely on the table.
Decisive levels for the BTC price
Trading is about maintaining critical levels of support to keep going up or down. In this case, The first key levels are between $ 43,000 and $ 44,000 and the second is $ 50,000.
However, the same is now true for the $ 55,000 level on lower time periods, particularly on the 1-hour candlestick chart. If you lose there is a gap to the next support zone which means that A break down is expected to the USD 50,000 level.
Yet, As long as it holds $ 55,000, the price of Bitcoin can’t stop much from hitting the next Fibonacci level at $ 63,000.
The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. All investment and trade movements involve risk. You should do your own research when making a decision.
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