• Bitcoin price hit a new all-time high at $48,985, reaching a market capitalization of over $900 billion.
  • The digital asset looks as strong as ever and aims for $100,000 in the near future.
  • Plenty of on-chain metrics indicate that BTC can quickly jump to new all-time highs.

This past week has been extremely beneficial for Bitcoin which jumped by 30% since Monday 8. Several positive announcements, especially Tesla purchasing $1.5 billion worth of the digital asset propelled the flagship cryptocurrency to new highs.

On-chain metrics indicate Bitcoin price will continue flying towards $100,000

Earlier this week, on Monday 8, we found out that Tesla Inc, bought $1.5 billion worth of Bitcoin. Additionally, the electric-vehicle company also said it will start accepting Bitcoin as a payment option in the near future. 

 

Right after the announcement, the flagship cryptocurrency exploded from a low of $37,988 to a new all-time high at $46,794 which was broken four days later on February 12 when Bitcoin price reached $48,985. 

The digital asset surpassed $900 billion in market capitalization for the first time ever, close to $1 trillion. This fact seems to have caught the eye of big institutions as on February 11, the oldest American bank. BNY Mellon announced a new service of Crypto Custody. The custodian bank holds around $41 trillion in assets and is moving into crypto.

BNY Mellon expects to launch a new digital custody unit this year as they have experienced a lot of demand from clients. Mike Demissie, head of advanced solutions at BNY Mellon stated:  

The platform we have built would service any of those assets. It will be driven by client interest and demand, and we also stayed tuned to regulatory activity to make sure we are supporting assets that are allowed in a particular market.

It seems that banks, institutions, and other platforms are rushing to get into Bitcoin or support the digital asset. Mastercard has also recently jumped on the bandwagon and announced that it will support certain cryptocurrencies directly on its network later this year. Raj Dhamodharan, executive vice president at Mastercard made the following statements:

Our philosophy on cryptocurrencies is straightforward: It's about choice. Mastercard isn't here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value — traditional or crypto — however they want. 

The first major payment application that started to support Bitcoin, PayPal, will roll out its crypto business into the UK market, thanks to the Venmo application. The platform plans to roll out the new service later this year, probably in the first half. 

The good news doesn’t stop there as RBC Capital Markets, a global investment bank, has suggested Apple to support cryptocurrencies on its Wallet app, which would allow the company’s stock to surge by another 25%. 

This was a note sent to clients from RBC analysts which increased their price target for Apple to $171. According to RBC, there is more potential in cryptocurrencies than electric cars, which has been the main focus of Apple in the past few months. 

Why are so many companies, banks, and businesses supporting Bitcoin when it just hit a new all-time high? According to Citibank, BTC could reach $318,000. A Citibank leaked report states that Bitcoin could reach this number by December 2021 which suggests that the narrative for institutional buyers has shifted in favor of digital assets.

We have recently found out that Andrew Yang, former Democratic Presidential Candidate, will run for Mayor of New York City, the world’s financial capital. According to Yang, if he gets elected, he will fight to make the city a ‘hub for BTC and other cryptocurrencies’. Yang is known for being pro-Bitcoin and supports cryptocurrencies in general. 

Bitcoin price determined to hit $100,000

Since January 25, the number of huge whales holding between 100,000 and 1,000,000 BTC ($4,800,000,000 and $48,000,000,000) increased by two, a more than significant rise indicating that large investors out there are still accumulating a ton of Bitcoin, expecting its price to rise even higher.

btc price

BTC Holders Distribution chart

On the weekly chart, there is only one resistance barrier ahead, the previous high of $48,985. The psychological level at $50,000 can also be significant. Using the Fibonacci Retracement indicator, we can find out several potential price targets for Bitcoin in the future.

btc price

BTC/USD weekly chart

If bulls can push BTC above $50,000, the next likely target will be $61,227, which is the 127.2% Fib level. Above this point, we find the 161.8% level ($76,907) and finally $94,163, which is the 200% Fib. 

btc price

BTC Supply on Exchanges

Another interesting bullish on-chain metric is the percentage of Bitcoin inside exchanges. Since January 11, at 10.5% of the current circulating supply inside exchanges, this number has dropped to a low of 10.06% currently despite Bitcoin price hitting new all-time highs, indicating that investors are not keen to sell just yet.

However, if Bitcoin does eventually see a massive correction, the Fibonacci Retracement tool can serve as a potential guide. The nearest support level is located around the psychological level at $40,000, which coincides with the 78.6% fib level. Losing this point would quickly push Bitcoin price down to $31,735 at the 61.8% level. 

The key support level for Bitcoin bulls is the 26-EMA, currently located at $24,269. This level hasn’t been lost since April 2020 and serves as a long-term guide.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP