BITCOIN (BTCUSD) – Week 7 – On high grounds
Bitcoin hit an all-time high this week upon the news that Tesla Motors (
TSLA) bought about $1.5 billions in January and expects to start accepting it as payment in the future. Tesla also said it was trying to maximize returns on cash that is not being used in day-to-day running of the company.
On Thursday, Mastercard announced it will allow merchants to accept select cryptocurrencies on its network starting later this year, while Bank of New York Mellon said that it will issue, hold, and transfer bitcoin for clients in the future. Twitter and Square CEO Jack Dorsey and rapper Jay Z have created an endowment to fund bitcoin development initially in Africa and India. We are seeing the initial widespread adoption of the lead cryptocurrency.
Technically, we see a small pullback to the low trendline marked with blue on the chart and then a continuation of the uptrend. However, we advise some caution because we are at all-time highs, with RSI divergence between the tops on 4h timeframe. If the price breaks the first support area at 38,000 USD we should carefully analyze the price action to detect the next moves.
Trade with care.
Best regards,
Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
TSLA) bought about $1.5 billions in January and expects to start accepting it as payment in the future. Tesla also said it was trying to maximize returns on cash that is not being used in day-to-day running of the company. On Thursday, Mastercard announced it will allow merchants to accept select cryptocurrencies on its network starting later this year, while Bank of New York Mellon said that it will issue, hold, and transfer bitcoin for clients in the future. Twitter and Square CEO Jack Dorsey and rapper Jay Z have created an endowment to fund bitcoin development initially in Africa and India. We are seeing the initial widespread adoption of the lead cryptocurrency.
Technically, we see a small pullback to the low trendline marked with blue on the chart and then a continuation of the uptrend. However, we advise some caution because we are at all-time highs, with RSI divergence between the tops on 4h timeframe. If the price breaks the first support area at 38,000 USD we should carefully analyze the price action to detect the next moves.
Trade with care.
Best regards,
Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
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