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Bitcoin (BTC/USD) Price Probing Fresh Highs as Cryptocurrencies Remain Bid

Bitcoin (BTC/USD) Price Probing Fresh Highs as Cryptocurrencies Remain Bid

Nick Cawley, Strategist

Bitcoin (BTC/USD) Price, Analysis and Chart:

  • Bitcoin and the ‘buy the dip’ mentality.
  • Little in the way of resistance to prevent higher prices.
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Bitcoin (BTC/USD) is continuing to press against $50,000 and is likely to break above shortly as the cryptocurrency market continues to shrug-off any selling pressure and forge further ahead. The sell-off over the past few days has been fully bought back, as has been the case in the past, and a new all-time high is likely in the short-term.

The fundamental drivers for the latest cryptocurrency surge center around increased Bitcoin adoption, or expected adoption, by major US companies. From Tesla to Mastercard, from Bank of New York Mellon to JP Morgan, Bitcoin is finding progressively more companies backing the cryptocurrency.

Bitcoin (BTC/USD) Price Outlook: Mastercard Preparing Crypto Payments, Will Twitter Follow Tesla?

The latest BTC/USD daily chart highlights the short-term series of higher highs as well as the longer-term series of higher lows. With little in the way of resistance going forward, and with the ATR currently over $3,000, the ‘big figure’ resistance at $50,000 is likely to fall relatively easily, leaving the way clear for Bitcoin to continue printing fresh highs. There is a strong argument against ‘buying the dip’ – you should only buy when the markets are trading higher - but this needs to counterbalanced when this is within a clear and strong uptrend, which Bitcoin is in. With the ATR in excess of $3,000, further large price swings should be expected and traders need to factor this volatility in before entering the market.

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Bitcoin (BTC/USD) Daily Price Chart (August 2020 - February 16, 2021)

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Retail trader data show 79.85% of traders are net-long with the ratio of traders long to short at 3.96 to 1. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall.Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Bitcoin trading bias

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

What are your views on Bitcoin (BTC) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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