Following the $ 1.5 billion Bitcoin purchase announcement from Tesla, Bitcoin surged by almost 15% from $ 39,000 to an all-time high of $ 44,899.

 

 

What has Bitcoin experienced today?

Quick summary: Bitcoin rose to its previous ATH of $ 42,000 on the 8th day of January. From there, he began a consolidation phase as he formed a descending triangle pattern with a $ 30,000 base that holds nicely as the bottom of the triangle.

The coin finally entered the upper angle of the triangle in early February when Elon Musk changed his biography to “#Bitcoin”, following a false breakout signal towards the end of January. Since the breakout at around $ 34,000, the Bitcoin price has reached the current price level of around $ 43,800, a 30% increase in total.

 

Tesla buys $ 1.5 billion of BTC

In a file he gave to the SEC today, Tesla announced that it purchased over $ 1.5 billion in BTC in January. This was more than enough to send BTC to a new ATH.

On the short term charts (4 hours), Bitcoin is now trading within an ascending price channel. Earlier this week, it bounced off the lower bound of $ 38,000 and after today’s volatility, BTC touched the upper limit of the price channel. It is currently trading around the $ 43,887 (1.618 Fib Extension) resistance.

Moving forward, the initial resistance level to the breakout is currently $ 43,887 (1.618 Fib Extension – orange). This is followed by resistance at the new ATH price of $ 44,900 (~ $ 45K), the upper bound of the rising price channel.

See Also
Against Bitcoin From Bloomberg Editor: “Disappointment”

 

Expected levels

Beyond the price channel, the resistance is located at 45,315 (1,272 Fib Extension – blue), 46,000 and $ 46,430 (1.618 Fib Extension – red). Additional resistance ranges from 47,500 (1,272 Fib Extension – yellow), 48,670 and $ 49,500 – $ 50K (1,618 Fib Extension – blue).

On the other hand, in case of a correction, the initial support is at $ 42,000 (.236 Fib and Previous ATH). This is followed by 40,000 (.382 Fib), a rising trend line and $ 38,550 (.5 Fib). Additional supports lie at $ 38,000 and $ 37,045 (.618 Fib).

The daily RSI shows that Bitcoin is currently in overbought conditions but may still have room to continue higher. This suggests that buyers are in full control of market momentum and are not over-expanding. This could open the doors for BTC to rise to $ 50,000.

Key Support Levels: $ 42,000, 40,000, 38,550, 38,000 and $ 37,045
Key Resistance Levels: $ 43,887, 44,900, 45,315, 46,000 and $ 46,430

LEAVE A REPLY

Please enter your comment!
Please enter your name here