Bitcoin’s (BTC) price pushed to a new all-time high of $51,721 as BlackRock, the largest asset manager in the world, stated they are starting to get into BTC. What will happen next, and should you buy some BTC now?
Fundamental analysis: BlackRock soon to join other institutions by buying some BTC?
Bitcoin’s recent move towards the upside and past $50,000 was, to some extent, very much expected – mostly because various institutional representatives and analysts spoke about BTC adoption in terms of it being a hedge against fiat overprinting. Michael Saylor compared the largest cryptocurrency by market cap with gold and showed his company’s BTC entry point through a graph of BTC eating away gold’s market cap:
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On top of that, the largest asset manager in the world, BlackRock, announced that they are starting to get into Bitcoin and that they recognize its potential as a store of value.
BTC posted week-over-week gains of 1.61%, outperforming ETH‘s 6.57% gain. Bitcoin is currently the largest cryptocurrency by market cap, boasting a value of $952.27 billion (61.7% of the total crypto market cap).
At the time of writing, BTC is trading for $51,000, which represents a price increase of 68.44% when compared to the previous month’s value.
BTC/USD technical analysis:
Bitcoin’s steady rise towards (and past) $50,000 was a continuation of an uptrend that started on 28 January. Bitcoin posted the recent all-time high with a lower volume than when it pushed to $42,000. However, this push may have been caused by less of a retail interest and more of a short-squeeze caused by institutions stepping into the market.
Bitcoin’s upside is currently protected by the all-time high of $51,721 as well as the next Fib retracement level, sitting at $57,656. Its downside, on the other hand, is protected by its smaller time-frame moving averages, as well as by its 23.6% Fib retracement level of $46,571.
BTC’s RSI on the daily time-frame has been in the overbought territory just slightly, with its current value sitting at 74.80.
Zooming in to the hourly time-frame, we can see BTC’s volume increase during the push above $50,000 and towards the new all-time high of $51,721. With the volume slowly descending, BTC is still trading around the $51,000 level.
21-hour EMA will act as Bitcoin’s immediate support level, while the 50-hour EMA will act as backup. However, if the selling pressure is too high for the two EMAs, we could except a pullback towards the $48,000 zone.