News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • $AUDCAD has continued to weak today, now trading around the 0.9800 level. The pair is down almost 200 pips from the multi-year highs hit just shy of the 1.0000 level yesterday. $AUD $CAD https://t.co/hffaXojF5j
  • $Gold trying to build a base off of that 1725 level - one minute chart so super small sample size. but that bearish run was aggressive $GC $GLD https://t.co/USjAU0lcig https://t.co/uubVG4Jpe2
  • Now up 40 handles from the $SPX's stalled break down. Looks like we are in for yet another interesting, intraday volatility day
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.19% 🇯🇵JPY: -0.33% 🇪🇺EUR: -0.41% 🇨🇦CAD: -0.45% 🇳🇿NZD: -1.11% 🇦🇺AUD: -1.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/e6FkqKIOLF
  • - There’s No Fundamental Justification For A Tightening Of Nominal Bond Yields At The Long End - Governing Council Should Instruct Board At March 11 Meeting To Fight Unwarranted Tightening Of Financing Conditions
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: US 500: -0.17% Germany 30: -0.70% Wall Street: -0.85% France 40: -1.46% FTSE 100: -2.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rgg0WIgTxK
  • ECB's Stournaras says ECB should accelerate PEPP purchases
  • Another brutal day for gold as it breaks beneath prior February lows Read more - https://www.dailyfx.com/forex/market_alert/2021/02/25/Gold-Price-Plummets-as-Treasury-Yields-Soar-Where-to-Next-for-Gold.html?ref-author=phanks&QPID=917701&CHID=9 $GLD $XAU https://t.co/5qpaELXVLz
  • $Gold sell-off getting nasty just started to test 38.2 of the 18-20 major move ~1725 $GC $GLD https://t.co/1cb3hjRAR2 https://t.co/nXy6gomZU0
  • Gold printed a fresh eight-month low earlier in today’s session and the precious metal looks set to fall further if US Treasury yields resume their multi-month rally. Get your $XAUUSD market update from @nickcawley1 here:https://t.co/I4RpWM0mEY https://t.co/OrtbLLncuK
Bitcoin Price Analysis: Tesla Adoption Propels BTC/USD to Record Highs

Bitcoin Price Analysis: Tesla Adoption Propels BTC/USD to Record Highs

Daniel Moss, Analyst

Bitcoin, Elon Musk, Tesla, Inflation Expectations, BTC/USD – Talking Points:

  • Tesla’s adoption of Bitcoin as a form of payment has propelled the cryptocurrency to fresh record highs.
  • Rising inflation expectations may continue to bolster BTC in the near-term.
  • The break above Bull Pennant resistance hints at further upside for the anti-fiat asset.
Advertisement

Bitcoin prices surged above the $44,000 mark to fresh record highs, on the back of news that Tesla has invested $1.5 billion in the popular cryptocurrency and plans to begin accepting it as a form of payment. The California-based electric vehicle manufacturer stated that “we expect to begin accepting Bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis”.

This should come as no surprise given Chief Executive Officer Elon Musk’s musings about BTC, commenting recently that “I think Bitcoin is really on the verge of getting broad acceptance by sort of the conventional finance people”. Musk has also previously enquired about the ability to convert large transactions of Tesla’s balance sheet into the anti-fiat asset.

Tesla’s move may provide further validation of BTC as a mainstream asset and intensify capital inflows in the near term. Moreover, the notable pickup in inflation expectations could ignite a more extended move higher, as coronavirus vaccination progress and the prospect of additional fiscal support fuels bets on a robust global economic recovery.

Bitcoin Price Analysis: Tesla Adoption Propels BTC/USD to Record Highs

Data Source – Bloomberg

Bitcoin Price Weekly Chart – RSI Hints at Further Upside

From a technical perspective, the outlook for Bitcoin continues to hint at further gains as price surges above key resistance at the 200% Fibonacci expansion (42673).

With the RSI continuing to track in overbought territory, and the slopes of all 6 moving averages notably steepening, the path of least resistance seems higher.

Breaching psychological resistance at $50,000 would probably propel price to test the 261.8% Fibonacci (54865), with a convincing push above bringing the $60,000 level into play.

However, if price fails to remain constructively perched above 42,000, a short-term pullback to the 8-EMA (35226) could be in the offing.

Bitcoin Price Analysis: Tesla Adoption Propels BTC/USD to Record Highs

BTC/USD weekly chart created using Tradingview

Bitcoin Price Daily Chart – Bull Pennant Break to Intensify Buying Pressure

Zooming into the daily chart reinforces the bullish outlook depicted on the weekly timeframe, as price surges above 42,000 to begin probing the Descending Triangle pattern’s implied measured move (47699).

Ultimately, the continuation pattern could prove to be a Bull Pennant formation, which suggests that price could climb an additional 29% from current levels to challenge the 60,000 mark.

However, if 48,000 successfully neutralize buying pressure, a short-term pullback to former resistance-turned-support at the January high (41969) could be on the cards.

Bitcoin Price Analysis: Tesla Adoption Propels BTC/USD to Record Highs

BTC/USD daily chart created using Tradingview

IG Client Sentiment Report

The IG Client Sentiment Report shows 75.35% of traders are net-long with the ratio of traders long to short at 3.06 to 1. The number of traders net-long is 4.61% lower than yesterday and 4.14% lower from last week, while the number of traders net-short is 16.11% higher than yesterday and 65.01% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall.

Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Bitcoin price trend may soon reverse higher despite the fact traders remain net-long.

Bitcoin Price Analysis: Tesla Adoption Propels BTC/USD to Record Highs

-- Written by Daniel Moss, Analyst for DailyFX

Follow me on Twitter @DanielGMoss

Top Trading Lessons
Top Trading Lessons
Recommended by Daniel Moss
Top Trading Lessons
Get My Guide

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES