Bitcoin price surged again last week, going from $38,000 to $49,000. Since then, the price has been struggling to grow, kept down by a resistance at $50k that did not even allow Bitcoin to approach it for the most time. However, the coin finally managed to hit this new milestone mere hours ago, according to CEX.IO data.
Fundamental analysis: What happened to Bitcoin?
Bitcoin has been making headlines every day for months now, even when it comes to well-known media outlets around the world. Not only that, but the media’s stance towards digital currencies has been changing recently from negative to positive.
Gone are the days when every other newspaper called Bitcoin a bubble, or proclaimed it dead every time when its price faces a rejection, as it seems that the coin is finally winning over the masses. The same can be said for some traditional financial institutions, such as Morgan Stanley and Deutsche Bank, which are ‘coming to Bitcoin.’
Morgan Stanley’s recent statement particularly surprised everyone, as the bank seemingly admitted that Bitcoin is here to stay as a serious asset class. As Morgan Stanley sees it, Bitcoin is making real progress in replacing the US dollar
Analysts have also noticed that Bitcoin’s chart behavior is surprisingly similar to the one in August 2017, even calling it ‘near-identical.’ Bitcoin’s recent price dip also doesn’t seem to bother institutional investors that much, even though its price went below $40,000. The price has recovered since then, proving that institutional investors were right not to worry.
Unfortunately, there was also some bad news regarding the coin. It was recently revealed that Elon Musk’s electric car company, Tesla, bought $1.5 billion worth of Bitcoin. This was something that was expected for a long time, as past reports mentioned that Musk’s factories allegedly had Bitcoin ATMs installed, and he did show an interest in the crypto sector by constantly dropping hints about it on his Twitter.
The revelation that he actually decided to invest in BTC, and to buy such a massive amount even caused BTC price to go up by $10,000 last week. Now, however, Musk could face SEC investigation due to this Bitcoin purchase, according to recent reports.
The US government seems to be rather concerned about Bitcoin’s progress to “replace the USD.” Whether or not this will happen, and whether the government can and will do something to try to stop it, remains to be seen. For now, however, it would appear that Bitcoin’s time has finally come, as the coin keeps making new milestones.
Technical analysis: $50k per coin
Recent CEX.IO data shows that Bitcoin price managed to hit a new all-time high only hours ago. After surging from upper $30,000s to upper $40,000s, the coin has been trading sideways for an entire week, and a few hours ago, it attempted to break the monotony by surging up to $50,000.
In fact, BTC went higher than this, reaching a new milestone of $50,230 on CEX.IO.
Its price was immediately rejected, and at the time of writing, the coin trades at $48,869. Whether or not BTC price will try to break the $50k resistance again, or will the coin’s current troubles push it further down remains to be seen. For now, all that can be said is that Bitcoin is awakening interest and gathering support from all over the place, including major banks, as reported earlier, even though the authorities are unlikely to appreciate this outcome.
What to expect next?
For a few months now, we expected Bitcoin to hit $50,000 by the end of Q1. The coin managed to do it already, indicating that its price is moving faster than predicted by analyzing its stock-to-flow. This could indicate that other milestones — such as my prediction that BTC could hit $80,000 by the end of Q2 — might also come sooner than expected.
Of course, the crypto industry remains highly unpredictable. But, even so, the numbers do not lie, and it would take a great deal to disrupt the price’s momentum.