Tesla’s $1.5 billion investment in Bitcoin and its plans to begin accepting the popular cryptocurrency as a form of payment, has fostered the anti-fiat asset’s surge higher in recent weeks. Indeed, the digital currency has climbed over 74% for the year and looks set to continue gaining ground on the back of loose monetary policy conditions and the expectation of further financial support out of the US.
Moreover, Bank of New York Mellon’s statement that it would treat BTC the same as any other financial asset and Mastercard’s commitment to integrating Bitcoin into its payment networks, may further validate the cryptocurrency as a mainstream asset and intensify capital inflows in the near term. Here are the key levels to watch for BTC/USD.
The long-term outlook for Bitcoin remains overtly bullish, as price tracks firmly above all six moving averages, and the MACD indicator surges to its highest levels on record.
However, bearish RSI divergence suggests that the relentless surge higher could be running out of steam. With that in mind, failing to gain a firm foothold above 50,000 could trigger a short-term pullback to former resistance-turned-support at the January high (41969).
Breaching opens the door for sellers to drive the cryptocurrency back to psychological support at the 30,000 marks. That being said, an extended pullback seems relatively unlikely given the RSI remains comfortably above 70, and the marked steepening of all six moving averages.
Therefore, a weekly close above 50,000 would likely intensify buying pressure and carve a path for a price to challenge the 261.8% Fibonacci (54866). Clearing that brings the 300% Fibonacci (62402) into the crosshairs.
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