Bitcoin pulled back a bit during the Thursday session, posting a rather unenthusiastic day as Bitcoin drifted lower to about the $51.5K level before closing the daily candle slightly negative today. This is hardly bearish as Bitcoin digests the recent gains; bull markets are not linear - there will be dips and turns in the trend, but those moments of turbulence are buying opportunities for the foreseeable future as Bitcoin marches higher.
(February 17, 2021 8:30PM EST)
Primary Outlook:
Same story another day, we're tracking Bitcoin's rally to see where it terminates, which we anticipate might be around $60K but that's really up to the price action to tell us. Today's pullback was minor and not typical of a trend reversal or topping pattern, so I expect the rally to continue to from here. With that being said, we're keeping an eye on $55K which would equal a $1T Bitcoin market cap, and then $60K, a large, round psychological number. Demand continues to significantly exceed supply, which is programmatically decreasing, so as more and more institutional investors and public companies add Bitcoin to their reserves and fiat currencies continue to be inflated due to COVID-induced quantitative easing, Bitcoin and other cryptos should continue to appreciate against fiat, and possibly even greater than before. Stay tuned as we track this rally to its terminus and then make down-side targets for correction bottoms to accumulate, though you should have your full stack by now.
Strategy:
We are simply in a buy the dips and HODL mode as Bitcoin works its way higher.
Traditional Markets
In traditional markets, gold continues to fall, now below $1,775 as the floor gives way. , which is interesting given Bitcoin's bullishness. One thesis is that Bitcoin is actually siphoning market share away from gold as a store of value and a stimulus asset, as posited by Jeff Gundlach today. Gundlach is another massively successful and wealthy investor and trade who is known for his mastery of the bond markets, but as a long-time gold bull, it's interesting to see him take an even more bullish view on BTC. Just wait until he buys BTC, too!
Support:
Look for tentative support at the $50K level, then ~$40K/$42K which should offer plenty of support.
Resistance:
Look for resistance at $55K which roughly equates to a $1 trillion market cap for Bitcoin, which might actually be a bullish trigger for a wave of new institutional investors, then $60K, then every $10K until $100K.
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