Bitcoin broke out higher again on Friday, cresting the $55K level and officially reaching a $1 Trillion market cap for the first time in Bitcoin's history. This is obviously a bullish engulfing candle as Bitcoin continues to new highs amid a myriad of bullish factors, and with Bitcoin closing near the highs in uncharted territory, it's likely BTC is really just getting started in the grand scheme of things.
(February 19, 2021 7:30PM EST)
Primary Outlook:
Today was a landmark day for Bitcoin, breaking above $55K and officially marking Bitcoin a $1T asset. This is phenomenal news and development for the entire space and of course, any investors to date. For now, Bitcoin looks unstoppable and will probably make a run toward $60K which is my primary target in the short-term. If ~$60K proves to be the Wave 1 terminus, then we could probably expect a pullback to about the $50K level or so before continuing higher. Bitcoin's in a well-defined uptrend and has the winds in its sails; you're probably better off just sitting and HODLing and ignoring the intraday chop, though that's your prerogative.
In the longer-term perspective, it's important to note a few things:
Bitcoin is now closer to $100K than $0.
$1T market cap means that Bitcoin is now "expensive enough" for institutional investors and traditional funds to invest in. Yes, you read that right.
Gold has consistently fallen while Bitcoin has risen precipitously. Is Bitcoin siphoning market share from gold? (article to come).
Bitcoin Dominance is likely to continue for a while.
Days like today are fun and exciting but it's important to remember that markets are not linear and do not go straight up during bull markets or straight down during bear markets. Bitcoin will continue to rally until it doesn't, and when it pulls back, assuming the fundamentals and technicals remain strong, we will continue to be bullish and BTFD.
Strategy:
Buy the dips. Earn for free. HODL. Stake for passive interest.
Traditional Markets
In traditional markets, gold continues to struggle as the US dollar holds its ground and the 10-year yields rise, which is really gold's kryptonite right now as safe-haven seekers get higher returns with bonds than gold less storage fees. When yields ultimately retreat and the US dollar falls back down as a result, then we'll see some resumed strength in gold and a continuation of the uptrend.
Support:
Look for tentative support at the $50K level, then ~$40K/$42K which should be the floor now.
Resistance:
Bitcoin pierced $55K but we'll need a convincing follow-through next week to officially cede $55K resistance as defeated. If Bitcoin continues up this weekend/early next week, we should look for $60K, then $70K, etc. all the way up to $100K.
Buy Bitcoin here.
Earn Crypto here.
