Bitcoin bearish or bullish in the short term? What analysts predict for BTC and the crypto markets.
Bitcoin prices hit record high after record high in a week that saw global corporate giants turn to crypto in a massive way – from buying the cryptocurrency to announcing new projects.
Tesla revealed in its securities filing on Monday that it had bought $1.5 billion worth of Bitcoin in January and that it intends to offer customers the Crypto Code option to buy their cars using the cryptocurrency as payment. On Tuesday, RBC Capital Markets analyst Mitch Steves speculated that Apple was looking to mimic Tesla’s crypto investment.
On Wednesday, credit card giant Mastercard announced it would add Bitcoin (Go to Buy Bitcoin with Credit Card Guide) and other cryptocurrencies to its payment network. Later, on Thursday, the oldest US bank BNY Mellon revealed that it will offer crypto custody services on the same platform that its customers use for cash, treasury bills and other traditional assets.
On the same day, PayPal announced that it would expand its cryptocurrency services to the UK through its Venmo app.
Bitcoin price to the moon?
The spate of optimistic developments in the bitcoin market drove its prices up by more than 25 per cent on a weekly basis. During Friday’s Asian session, the flagship cryptocurrency had secured $48,912 as a new record high, prompting many analysts to predict an extended upward move towards $50,000.
Michaël van de Poppe, an independent financial analyst/trader in Amsterdam, explained earlier this week, ahead of Thursday’s price boom:
„Breaking the ATH for bitcoin [in addition to] the gains and close above it today/tomorrow [means] we could go further towards $50,000 as the next target“
Poppe later tweeted that bitcoin needs to hold $43,500 as support to ensure continuation towards and above $50,000. If this happens, the cryptocurrency could even reach $62,500 next.
Bitcoin is flirting with the $50,000 price level as it heads into the weekend session. Source:
Joel Kruger, cryptocurrency strategist at digital asset exchange LMAX Digital, also cited $50,000 as the next potential price target for bitcoin, calling it a „psychological barrier“.
Mark Warner, Head of Trading at BCB Group, agrees, but warns against heavy profit-taking near this level, which could lead to Bitcoin heading lower after testing it.
Traditional chartists are euphoric. One independent analyst commented on Twitter that Bitcoin has a very slim chance of going lower at this point, unless there is a „Black Swan“ event that does the unthinkable.
„I can’t see BTC topping out with companies left and right wanting to invest,“ he commented. „$50k is inevitable, whether we go down a bit before then or not shouldn’t be a dealbreaker.“
Bitcoin was trading at around $47,380 at the time of writing.