Leading RoboForex analyst Dmitry Gurkovsky discusses potential further scenarios for Bitcoin’s price.
The days when investors joked about large purchases of the first cryptocurrency by Elon Musk are over — now the company Tesla bought digital gold worth $1.5 billion. The market immediately reacted to this news with a buoyant rally, and the leading asset hit a new record, testing the $48,000 level amid aggressive buying by retail investors.
On the daily BTC/USD chart, the RSI has risen above the 70 level. Earlier in this trend there were already two such breaks. In the first instance, the asset’s price rose from $12,400 to $20,200 (almost $8,000), while the RSI remained above 70.
The second rise was from $20,200 to $42,400, amounting to over $22,000.
There is now a third move above the 70 level, which could signal the formation of another strong bullish impulse with a potential rise of more than $22,000.
As far back as January 2021, Tesla updated its investment policy, which now permits it to buy cryptocurrency. Moreover, the company is preparing to accept Bitcoin as payment for its products in the near future.
At the same time, for many this news was not unexpected—quite the opposite—since such a decision by Musk aligns with growing interest in the digital-asset market from major global companies and investment funds.
Subsequently, information arose that Apple needs to get seriously involved in digital assets, as it has enormous growth potential in this sphere—more than any other company in the world. Earlier, the Vice President of Apple Pay noted that they observe cryptocurrencies with interest and that this direction has long-term potential. If Apple even starts buying Bitcoin, surely many other companies will follow suit.
Experts immediately calculated that if American companies allocate 1% of their assets to the flagship cryptocurrency, the price could rise to $70,000 per coin, and with investments up to 10%, Bitcoin could move above $400,000.
Given the continuously shrinking supply of cryptocurrencies on the market, such corporate behaviour could indeed trigger a colossal rally in the crypto market. Large holders continue to accumulate and store digital assets, reducing the number of coins available for new potential buyers.
On the 4-hour chart of the digital asset, a pennant pattern is forming. It features a strong preceding move and the formation of a small triangle at the top. If the upper boundary of the pattern is breached, a rapid rise to the $55,000 target should be considered.
If the lower boundary of the pennant is breached, the correction could continue to the nearest support at $42,000. From this level one can subsequently expect another rise in the value of the leading digital currency.
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