bitcoinexchangeguide.com
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- The price of Bitcoin is trading around $40,000 after surging past $41k on Monday, the highest level in more than two weeks.
- Early last week, the Bitcoin price had fallen to $31,000, and since then, it has rallied about 30%.
[/beg-green-box-list] Now that BTC has broken out of its $30k to $40k range, the market wants to first see $42,500, an important level, to be broken. This represents the 200-day moving average and breaching it could see us rallying to $50,000 next. “Getting back above $40,000 was technically a positive,” said Art Hogan, chief strategist at National Securities.
“The folks who look at this using technical analysis would tell you that when it breached $40,000, that sent a negative signal, and now that it’s recaptured that level, it sends a positive signal.”
This latest rally, as we reported, came amidst a set of bullish news in the form of MicroStrategy completing its $500 million senior notes offering and filing for the sale of $1 billion MSTR shares to buy even more Bitcoin. https://twitter.com/filbfilb/status/1404522089072271369 Tesla CEO Elon Musk also clarified that the electric car maker would accept BTC once it's mined by 50% clean energy. The biggest endorsement for Bitcoin came from Paul Tudor Jones, who wants to invest 5% of his portfolio in Bitcoin, just like cash, gold, and commodities. “I like Bitcoin as a portfolio diversifier,” he said. The FOMC meeting this week is of significance as well. Not just crypto, but the stock market is also eagerly awaiting Federal Reserve Chairman Jerome Powell’s reaction to recently recorded high inflation. “In order for Bitcoin to resume that rally, I think you’re going to need to see more widespread legitimate adoption,” said Tom Essaye, a former Merrill Lynch trader. Already, El Salvador has become the first country to adopt Bitcoin as legal tender. As we reported, the Central American Bank for Economic Integration, which is made up of 17 member states, called it a “really big deal,” adding, “we're really proud that they've made us part of this new policy.” “BCIE is accompanying El Salvador in this new and innovative policy of adopting the cryptocurrency called Bitcoin for legal use,” said President Dante Mossi. https://twitter.com/krugermacro/status/1404704856837869574 Besides Bitcoin, the stock market is also enjoying an uptrend, with the S&P 500 hitting a new ATH at 4,255.15. While at 34,393.75, Dow Jones Average is near its May peak, tech-heavy Nasdaq which has been in an uptrend since last month, soared past 14,174 to a new high. USD also shows strength at 90.634, but gold has taken a slide to $1,863 per ounce. As for the cryptocurrency market, altcoins are also seeing green since last week, with the total market cap now above $1.7 trillion. However, according to Barry Silber, the founder and chief executive officer of Grayscale’s parent company, Digital Currency Group, 99% of cryptos are “overpriced.” https://twitter.com/loomdart/status/1404515261097590787 Silbert also shared he is preparing for “macro fireworks” and, as such going long the VIX which represents the market's expectations for volatility over the coming 30 days. He added,
“No clue what will be the spark, hence the volatility hedge. but food prices, oil prices, investor complacency, speculative excess, lack of trust in the Fed, interest rate normalization, meme stocks, overpriced cryptos, etc., are all on my mind.”