(DAILY NOTION): Bitcoin Bulls Have Successfully Taken $57,000, Is $60,000 Next?

Source: Yahoo Finance

The Bitcoin bulls have done it again. On Feb 21, it made another history as it rose past the $57,000 level to hit a high of $58,317.22. Over the weekend, the bulls have been in a tussle with the bears but made a breakthrough on Feb 21 when it shot up to $57,666.35. Although the price experienced a slight pullback after that, the bulls gained momentum again to achieve the new all-time high.

At the time of writing, the price stands at $57,471.19. In tandem with the price moving south, the Relative Strength Index (RSI) has moved from a high of 82 to 47 presently. The bulls seem to be taking a breather as the price is moving below the 10-day Simple Moving Average (SMA), which is denoted in blue and the 50-day SMA, which is denoted in purple.

Anil Panchal, an analyst from FX Street believes that further pullbacks can be expected, as indicated by a bearish Moving Average Convergence Divergence (MACD). The key support levels lie at $56,200, $54,300 (the current one-week-old support line), and $51,890. Meanwhile, on the upside, key resistance levels are at $58,300 and $58,550, which is an immediate resistance line.

As the Bitcoin bulls continue to defy the nay-sayers odds, it continues to garner attention in the spotlight. Coin Telegraph recently reported that Treyce Dahlem, who is an analyst at The Tie, a data solutions provider for digital assets, discovered that social media conversations with ‘Bitcoin’ as a keyword have increased by 38% since Feb 18.

As of the time of writing, the global cryptocurrency market capitalization stands at $1.72 trillion, as per data from CoinMarket Cap. Bitcoin, the flagship cryptocurrency holds 61.5% of that total.

Bitcoin continues to make incredible progress in an economic condition that is struggling to find its footing in the aftermath of the global pandemic. Recently, the debut of North America’s first Bitcoin exchange-traded Fund (ETF) saw investors trading $165 million worth of shares on its first day. By the end of its second day, its assets under management (AUM) had increased to $421.8 million.

The founder of Sky Bridge Capital, Anthony Scaramucci believes that Bitcoin can reach $100,000 by the end of the year. While that remains to be seen against a backdrop of speculations about a bubble, it cannot be denied that at this moment, the Bitcoin bulls seem pretty adamant to stay for a while.

Once again, traders are advised to always have a sound risk management guidelines in place while trading, to counter the negative effects of any temporary high brought on by a Fear of Missing Out (FOMO) sentiment.

In the meantime, let’s see how this week unfolds for BTC/USD.

BTC/USD (as of Feb 22, 2021, 10 a.m., GMT +8) - $57,471.19

FOLLOWME BTC/USD User Sentiment (as of Feb 22, 2021 at 10.35 a.m.)

Short – 74.84%

Long – 25.16%