The price of Bitcoin (BTC) has been rising consistently in the past few weeks, reaching a renewal of its last historic high at around $ 57,500 this Saturday (20).
The week started with positive news in the cryptocurrency market, such as first company listed in Germany allocating its Bitcoin reserves, or the launch of the first Bitcoin ETF in Canada, which traded more than $ 220 million in its debut, for example.
Just for a day
– Elon Musk (@elonmusk) February 19, 2021
“Only for a day”
These news are driving the price of Bitcoin, while Elon Musk has also adopted the latest “laser eye” meme to the delight of hodlers, who are looking forward to a $ 100,000 price tag.
However, the next big point of interest is around $ 63,000, and that can be achieved relatively soon if Bitcoin can stay above some key support levels.
Bitcoin continues to recover
Bitcoin’s four-hour chart shows a clear upward path, as the cryptocurrency has moved out of the construction range between $ 30,000 and $ 42,000. Since then, the crucial levels of $ 44,000 and $ 50,000 have remained supportive, which has also served as a ‘launch pad’ for current prices above $ 55,000.
This race is also being driven by declining exchange bookings. This is very similar to what happened in late 2016, when more Bitcoins were withdrawn from the exchanges than deposited.
These withdrawals mean that people want to keep their Bitcoins for a long term, indicating strong demand and low time preference.
During the recent BTC price rally, the first Fibonacci level at 1,618 was achieved. Bitcoin is now approaching the second point of interest at the 2,618 Fibonacci level, somewhere around $ 63,000.
For that to happen, the $ 50,000 level is crucial on the four-hour chart. If that value is maintained as support, there is a high chance that Bitcoin’s price will reach $ 63,000 soon. However, if you lose $ 50,000, we could depreciate up to $ 43,000.
Total market value of cryptography reaches $ 1.7 trillion
Weekly chart shows total capitalization of the cryptocurrency market (Reproduction /TradingView)
Meanwhile, the cryptocurrency’s total market capitalization is approaching the $ 2 trillion mark in this bullish cycle, which many people never expected in 2020.
However, after breaking the 2017 historical record, the next level of interest was the record $ 1.2 trillion in capitalization, which also corresponds to the 1.618 point in the Fibonacci sequence applied to the chart.
This region has been broken up, and market capitalization now points to $ 1.85 trillion, something close to the level of 2.618 in the Fibonacci sequence. The chart also shows a huge gap between the 21-week Moving Average and the current cryptocurrency price, suggesting that the hike may be being extended too much.
Historically, the end of February and the month of March have not been optimistic for the market, so a correction should not come as a surprise. In that case, a new $ 1.2 trillion test is definitely ‘on the table’.
Crucial levels for observing BTC price
4-hour chart for the XBT / USD pair (Playback /TradingView)
In Bitcoin trading on the market, it is about maintaining critical support levels for a further bullish or bearish momentum. In this case, the first key levels are found between $ 43,000 and 44,000, followed by the important support of $ 50,000.
The same can also be said about the level of $ 55,000 in periods of downturn in the market, as shown by the hourly chart. If these supports are lost, there is a gap for the next support area, which means that a break to the $ 50,000 level can be expected.
However, as long as support at $ 55,000 is maintained, there is nothing to stop Bitcoin’s price from reaching the next Fibonacci level, which points to $ 63,000.
The views and opinions expressed here are exclusively those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risk. You must conduct your own research when making a decision.