Today, the price of bitcoin continues to move up, after a massive 13% move yesterday.
Additionally, just like we predicted yesterday, the price of bitcoin finally went above $45,000. At the time of this writing, it was trading around $47,200, according to CoinGecko.
Additionally, buyers continue to pour fresh cash into the market, and since yesterday daily volume increased from around $65 billion to $86 billion.
As Forbes' senior contributor Charles Bovaird reported:
"the auto maker (Tesla) revealed plans to "begin accepting bitcoin as a form of payment for our products in the near future". Multiple analysts interpreted these developments as positive for bitcoin."
According to Forbes, Tesla may start accepting payments in bitcoin soon. We think this is terrific news since the more places accept bitcoin, the more widely adopted it gets.
Hence, we think that the most crucial narrative for 2021, and perhaps the following years, will be the adoption of bitcoin by institutions and corporations.
In sum, positive news continues to be released, and more institutions join the bitcoin space, the odds that BTC/USD will continue to appreciate are high.
For now, we expect bitcoin to continue its uptrend and move above $50,000 soon.
Bitcoin seems to have found support above $45,000, an excellent sign that price may continue to move into higher price ranges.
As a reminder, we are confident that BTC/USD will continue to move upward if:
- BTC/USD remains above its 20-day EMA (red), 50-day EMA (green) and 200-day EMA
(blue). - BTC/USD doesn't drop below $45,000.
- BTC/USD daily volume remains above its 21-day Moving Average
What Do Traders Think?
Today's first tweet comes from Pomp (Anthony Pompliano), co-founder of Morgan Creek Digital and The Pomp Letter writer.
In his post, Pomp shares an interesting perspective of the effects of quantitative easing on bitcoin's price, precisely what we discussed in yesterday's Daily Roundup.
As Pomp wrote:
"we have $47,000 Bitcoin, and they're about to inject $1.9 trillion into the economy."
The bitcoin enthusiast is referring to the fact that President Joe Biden approved a relief package totalling $1,9 trillion. According to the MarketWatch:
"Democrats on a pivotal House panel on Monday proposed an additional $1,400 in direct payments to individuals as Congress began piecing together a $1.9 trillion COVID-19 relief package that largely follows President Joe Biden's proposal for battling the pandemic and reviving a still staggering economy."
Pomp argues that a new stimulus relief will most likely have a positive impact on the price of bitcoin, which is already valued at around $47,000. Since the new year, the cryptocurrency has grown over 58%, according to CoinGecko.
The next post comes from Willy Woo, a crypto analyst whose Twitter profile describes him as an on-chain analyst.
In his tweet, Woo shares a chart of both the price of bitcoin and gold, and he notes how the price of these assets seems to be uncorrelated, since Microstrategy's first bitcoin purchase.
While the price of gold has been dropping since the summer, oppositely, bitcoin's price has been growing. We are so excited about this finding because being uncorrelated to other assets is a feature of bitcoin.
The next tweet comes from Bill Barhydt, the CEO at Abra, a platform to buy and sell
cryptocurrencies.
In his post, Barhydt shares a thrilling screenshot taken from Bitcoin Treasuries; a website focused on following hedge funds, public and private companies bitcoin reserves.
The CEO added an excellent remark that
"At least 6% of all Bitcoin, over $50 Billion, is already in corporate treasuries."
This data completely goes in line with our argument that the more companies that acquire bitcoin, the higher the price should go. As Pedro Febrero, an analyst at Quantum Economics, wrote for Decrypt:
"This new wave of institutional investors will definitely push bitcoin OI in the long-term. Corporations are realizing that it's worthwhile to keep a significant part of their funds in bitcoin."
Hence, as long as these institutions do not sell their stack in the short-term, there is a little chance for a price reversal.
To conclude, if we take a quick look at "BTC: All Exchange Reserves", courtesy of CryptoQuant.com, we quickly realize that there is a supply-side crisis as a significant portion of all bitcoin in existence has been taken out from exchanges.
The last post of the day comes from Luke Gromen, who is the Founder & President at Forest for the Trees (FFTT).
In his short and straight-to-the-point tweet, Gromen asks a fundamental question, connected to "the Great Reset", an initiative promoted by the World Economic Forum (WEF), to "improve the state of the world".
Of course, WEF is not promoting bitcoin to improve the world, but rather other policies. What Gromen argues is if bitcoin couldn't be the real catalyst for this "Great Reset".
In our opinion, we think bitcoin could be. Since the cryptocurrency is a permissionless, open-source and distributed Money Over-IP (MoIP) network, it possesses all the necessary qualities to completely shift how currency is created and how monetary policies can and should be applied the benefit of the common man.
Because bitcoin cannot be censored, and because bitcoin has a limited supply, it becomes a powerful tool in the hands of free men and women. We believe bitcoin is the ultimate tool for personal empowerment since it separates money from the state.
To conclude today's Daily Roundup, let's discuss how we think bitcoin's price will trade during the rest of the day.
Bitcoin Price Prediction
Today, bitcoin's price broke yesterday's high and went above $47,000 according to CoinGecko.
Since yesterday the price of bitcoin has grown over 2%.
Like we predicted in yesterday's Daily Roundup, we expected the price to move towards $50,000.
However, we also wrote that we did not think bitcoin would immediately find support above this critical price range. That's precisely what happened, as the price of bitcoin suddenly dropped to $47,000.
We think that the current bull-run will continue, and our next price target is above $50,000. We don't believe BTC/USD will suffer a significant retrace until the price is near $55,000.
As we wrote in the introduction, as long as institutional buyers pour millions of dollars into the bitcoin market, there is little chance for a price reversal. With an endorsement from Musk, a horde of new buyers has entered the space, which is now driving the current price appreciation.
How do we think the price will trade throughout the day and during the rest of the day? As shown in the above chart, we believe that bitcoin could move to $53,000. Above that, it's quite unlikely for the time being. Unless more positive news reaches the cryptocurrency space, in the time being.