Bitcoin price sees $51k as adoption momentum overshadows macro trend
Bitcoin rose to $51,050 on Bitstamp and could reach $55,000 if upside momentum holds
Bitcoin (BTC) price broke above the $51k mark for the first time, surging as high as $51,050 before it retreated to $50,600. While the above action was on Bitstamp, CoinMarketCap shows that Bitcoin price reached an aggregate all-time high of $50,933 on all exchanges.
BTC/USD thus set a new record for the umpteenth time in 2021.
And that might not be all as the technical picture suggests bulls could capitalise on the upside momentum to rally towards $55,000.
However, investor Mike Novogratz has cautioned that the adoption frenzy is “overshadowing” a bleak macroeconomic picture and that Bitcoin traders need to watch the market carefully.
Bitcoin adoption momentum favours price surge
Bitcoin is seeing increased upward momentum amid surging interest from institutional investors. After Tesla’s $1.5 billion purchase, MicroStrategy has announced it is looking to raise $600 million to invest in Bitcoin. The Wall Street firm, which bought BTC worth $650 million in 2020, will raise the new funds via convertible senior notes.
According to Anthony Scaramucci, the founder of SkyBridge Capital, Bitcoin is likely to see further price growth as more institutional investors add it to their balance sheets.
Speaking to Yahoo Finance, he noted:
“…the market intel out there is that there are many corporations that are thinking about adding Bitcoin to their balance sheets.”
One of these institutions is investment giant BlackRock, which recently revealed it was ready to buy BTC or invest in Bitcoin futures.
But while the adoption rage adds to the bullish sentiment, Galaxy Digital CEO Mike Novogratz has cautioned traders. The billionaire investor has explained that adoption is “overshadowing the macro story”, something that could be worrying given the sell-off witnessed in the US 10-year rates.
“Rates sold off hard today. Is it the beginning of something far bigger? All traders need to watch closely. Crypto is in a secular bull market. The adoption story is overshadowing the macro story. So gold and $BTC can go in opposite directions for a while.”
Bitcoin price short term outlook
Given the strong institutional demand for Bitcoin, it’s likely the potential concern with the macro trend might not stop a short-term rally.
As of writing, BTC/USD is trading around $50,835 as bulls look to flip the $50k level into strong support. If this happens, there are chances BTC/USD could explode above $51,000.
The outlook on the 4-hour chart suggests this could be the case if bulls hold above the 20-EMA that has nicely tracked the uptrend. The moving average currently offers support at $48,657, which is near an ascending trend line support that extends towards $52,000.
The 4-hour RSI is rising while the MACD is turning bullish as buying pressure increases. A continuation of the parabolic rally seen since Q4 2020 could see BTC/USD easily claim prices near $55,000.
On the downside, BTC/USD could find a reload zone near $49,800 and then the 20-EMA ($48,657). Any further losses could see short-term declines to the primary support level at $46,000, with $43,000 acting as a major demand zone.