Holding its position above the $55,000 mark is very significant for Bitcoin. Bitcoin reached its all-time price high of $57,600 on 20th Feb 2021 after a consistent build-up in the previous weeks.
There have been many indications in the past weeks that the price of Bitcoin would increase, such as the news of the introduction of the maiden Canadian Bitcoin ETF, which debuted a whopping $220 million trade and a big German company acquiring bitcoins to diversify their cash reserves.
News like these are causing the price hike of Bitcoin. The latest tweet from Elon Musk was also somewhat reassuring for the investors who are hoping for the price of Bitcoin to cross $100,000, but that is a long term goal, and the current mission of Bitcoin should be to get to the price of $63,000, which could become possible sooner than expected.
Bitcoin Clinging On To The Driving Seat By Improving Consistently
Bitcoin has been having an upward trend ever since its price ranged between $30k to $42k, which set the pace for the $50k and, eventually, the current high price of $57k+.
Another driving factor for this increase in price was a decrease in the exchange of Bitcoins. This means that people are willing to invest long term in Bitcoin and don’t want to exchange it, unlike in 2016, when people withdrew more Bitcoins than they deposited.
However, this is a very risky point for Bitcoin because if it maintains its price, then there is a good chance of the cryptocurrency reaching its next target price, but if it loses its position, then it might fall down as low as $43k.
$1.7 Trillion Is The New Market Cap Of The Overall Crypto Market
A lot of people would not have believed in the previous year that the Crypto market would come near the mark of $2 trillion in the succeeding year. The Fibonacci level of 1.618 was achieved in 2017 after the $1.2 trillion market cap, and now the bitcoin is aiming for the Fibonacci level of 2.618 by hitting the valuation of $1.85 trillion.
As long as Bitcoin remains above the price of $55k in the shorter on hour candle chart and does not let it get to $50k, then it won’t take much time to hit its next Fibonacci target level.