TL;DR Breakdown
- Bitcoin price almost got rejected at the $48,000 price level and dropped to a daily low of $47,270.
- investors are searching for the next big coin, and they are likely to go for altcoins that are exploding in value.
- The coin is trading at $49,505 and heading for the $50,000 target, as well as the 4-hour simple moving average.
Bitcoin Price Prediction: Current Price Overview
Yesterday, Bitcoin almost got rejected at the $48,000 price level and dropped to a daily low of $47,270. However approaching the end of day (March 6th), BTC broke above the $48,000 support level.
Therefore opening the 24-hour daily chart at a price of $48,905 against the US Dollar.
The leading digital asset has been stuck below the $50,000 psychological resistance for the past few days. Good news is the daily chart seems promising for the bulls, whereby the coin is trading at $49,505 . The daily change is 1.38 percentage and the bears are pushing for further lows below the recent bottom of $46,000.
Bulls are hoping the price will not go below its 24-hour low of $47,127; so as to gain further momentum to break the next key resistance.
All traders are watching the $50,000 resistance , after which Bitcoin is likely to resume its 2021 Bull cycle. A big problem remains persistent selling pressure among whales who have already begun doing heavy transactions.
Traders are advised to remain aware that increasing whale activity coincides with significant price declines. And this is especially true with transactions involving moving funds across exchanges.
Earlier on yesterday, we mentioned how Bitcoin and the entire cryptomarket is facing a downtrend due to spiking US Treasury yields.
The association between increasing interest in treasury yields and dropping crypto prices is investors feeling from risk-on assets such as bitcoin.
Breaking the $50,000 psychological resistance might not neccessarily spike the next bitcoin bull run. This is because of several short term weaknesses. Ofcource the coin could surge but for the short term.
Again, more investors are searching for the next big coin. And they are likely to go for altcoins that are exploding in value.
This could be Bitcoin Cash (BCH), Litecoin (LTC) or Cardano (ADA). ADA for instance rose has seen a 157% increase between the final quarter of 2020 and now.
Litecoin on the other hand increased from $43 in September 2020, to $182.
There is fear among Bitcoiners that the price of the coin might break below $45,000 to $38,000 if it fails to sustain its price above $46,000.
Bitcoin Price Movement in the Past 24-Hours
(Source: Tradeview)
Bitcoin broke above its first key support of $48,800 in the early trading hours of the daily 24-hour chat.
The bears are advocating for a drop below the $45,000 support and are hoping the recent price change is below the triangle support zone. Which, they claim could pave the way for a downtrend.
Bitcoin Price 4-Hour Chart
(Source: Tradeview)
During press time, the coin is trading at $49,505 and heading for the $50,000 target, as well as the 4-hour simple moving average.
Besides, a triangle resistance took shape and formed resistance on the 4-hour chart around the $50,200 resistance level.
The bulls are hoping the triangle will spike an increase above $52,000 and $53,000. If this will be the case, a strong hurdle for bitcoin only lies around $55,000.
Bitcoin Price Prediction
Traders believe the biggest reason for Bitcoin’s recent boom cycle is the involvement of institutional investors. The biggest investment being Elon Musk’s stake on the coin.
Another bigwig is Morgan Stanley Bank which is planning to invest part of a $150 billion capital kit. Leading financial firms seem to be following Tesla’s $1.5 billion investment on the coin. According to Tim Drapper, Apple, Netflix and Amazon should follow suit.
Conclusion
Tell us what your thoughts are on the price direction of Bitcoin? Will it tank following big investor involvement , or will it succumb to the increasing interest rate of US treasury yields?
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