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The bitcoin exchange rate tested the strength of the lower limit of the channel in the area of 44,300, but quickly bounced up and is currently trading at the price of 46,000. Concerns about the further growth of the first cryptocurrency are quite high, as traders do not want to lose the profit that was obtained as a result of the growth of BTC after the purchase of bitcoins by Tesla for a total of $1.5 billion. Any downward movement forces speculators to take profits, which at any time can lead to a massive trigger of stop orders and a major drop in the exchange rate in the area of 40,000.
However, according to the latest data, the Dormancy Flow indicator from Glassnode shows that the bitcoin exchange rate has not yet returned to the initial level, which indicates bearish or bullish sentiment. The test of this level in January of this year after the surge and major growth of bitcoin has not yet been reached, although bitcoin has already updated its historical maximum. This suggests that the upward potential of the pair is still preserved and in the near future we can see the level of 50,000 and even 52,000.
But while many traders are waiting for a new wave of growth, speculation continues about whether bitcoin is suitable for the world of online payments. It's no secret that the network can only process about five transactions per second, and the volatility of its price clearly does not benefit its holders, as it can change very seriously even within one day. Failures of 20-30% for bitcoin are quite normal. Therefore, in all likelihood, BTC will continue to serve only as a means of saving.
An important point for the cryptocurrency market is whether other Wall Street giants will follow the example of Tesla, which recently bought bitcoins. Recall that the purchase of bitcoins by the test company is associated with a change in its investment policy. In a statement, the company said that the purchase of cryptocurrency will allow more flexibility to further diversify risks, which will increase profits. This solution will allow Tesla to invest in certain alternative assets, including digital coins, gold, and funds. The company also noted that it plans to start accepting bitcoins as payment for the products it produces.
Whether other companies will follow Tesla's example is a big question. Many experts doubt that the electric car maker will start a new trend, as there should be a pretty good reason to invest corporate money in such a risky asset as bitcoin. On the other hand, there are companies like MicroStrategy that invest in cryptocurrencies. In his latest statement, CEO Michael Saylor said that Tesla's entry into the world of cryptocurrencies has made bitcoin more attractive to large businesses, which in the future may encourage other companies to explore the demand for this type of asset for investment.
Today, another report from RBC Capital Markets was published, which indicates that Apple can very quickly gain its market share if it introduces the ability for users to buy and sell cryptocurrencies. Analysts at RBC Capital believe that the digital giant's advanced software and technological advantage can quickly create a secure ecosystem with which to use digital assets. Such a move will also very quickly turn the US into a leader in the field of crypto assets, which will help the country cope with the threat posed by the Chinese digital yuan.
In this context, a reasonable question arises: will Apple follow the example of Tesla, or not? If so, this will lead to another major wave of bitcoin growth, and the figure of 100K will not seem as far away as many people think.
Some analysts also recommend that Apple consider investing in bitcoin, as it will bring much more profit than a stock buyback. According to the latest report, the company has a cash flow of $196 billion. This amount could buy about 22% of all existing bitcoins.
Grayscale CEO Michael Sonnenschein also spoke in favor of bitcoin, saying that the demand for it among institutional players will continue to increase in 2021. Even now, they continue to record inflows of investment funds, which will ensure the rise of the bitcoin exchange rate in the future. According to Sonnenschein, regulatory problems are no longer as acute as they were a couple of years ago. This is evident from the fact that the sharp strengthening of the bitcoin exchange rate did not affect the regulatory authorities of developed countries in any way. Many central banks are already seriously thinking about creating digital currencies in the crypto industry, which will only spur the development of the sector.
Amid the general hype, Twitter's CFO also said in an interview yesterday that the company is considering transferring part of its reserves to Bitcoin. However, this news is unlikely to surprise anyone. We need concrete actions.
No one doubts that Tesla has made its contribution to the crypto industry. But there is another equally interesting moment when normal ETFs for bitcoin will finally appear. An exchange-traded fund can be an attractive tool for a private investor, but so far there are no such offers. Although there are exchange-traded products that track cryptocurrencies in Europe, US regulators have repeatedly thwarted attempts to introduce them in the US, citing concerns of possible manipulation due to insufficient liquidity. However, after the sharp rise in bitcoin that we have seen recently and the change of leadership at the Securities and Exchange Commission, the prospect of the first bitcoin ETF in the US seems to be becoming more real.
This is another prerequisite for the medium-term strengthening of bitcoin in the coming years.
As for the technical picture of bitcoin, at the moment, problems are observed in the region of $48,200. Buyers will do their best to defend the support in the area of $40,000, as its breakout will lead to a larger downward trend in the area of 38,000. A break of the 48,000 level will lead to a new sharp rise in Bitcoin to the maximum of 50,000 and 52,000.
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