Bitcoin Price Jumps to $48k on Tesla, Buyers Now Target $62k

The Bitcoin price is off the rafters, ripping above $42k to a new all-time high. As of Feb 9, the BTC/USD price had momentarily climbed to $48k, $2k short of $50k.

The BTC price is up 21 percent on the last day and a massive 40 percent week-to-date, a highlight of just how rapid price action has been. Accordingly, the Bitcoin price is up 3.5X year-to-date. Positively, fundamentals point to more headroom for the world’s most valuable digital asset.

The tear up is with high participation. On the last day alone, the average trading volume is up 76 percent to over $90 billion. Since prices are edging higher, most market participants are buying the coin, helping maintain its price above Jan 2021 highs.

Bitcoin (BTC) Price Overview

From price action, the path of least resistance is northwards. Buyers are in control. In a near-FOMO-like movement, traders are buying the dips thanks in part to solid fundamentals.

Following yesterday’s sharp gains, the BTC/USD price is trading within a bullish breakout pattern. Notably, Bitcoin bulls broke above $42k with markedly high trading volumes. It indicates confidence in the uptrend and a possibility of buyers pushing Bitcoin’s limits.

The next feasible target for Bitcoin bulls is $50k, a psychological round number.

On the flip side, a contraction from spot rates means the immediate support level is $45k. Technically—and based on price action and market sentiment, this may provide another opportunity for traders to buy the dips with targets at $50k—or better going forward.

Based on the Fibonacci extension tool—since Bitcoin is charting new territories, the BTC/USD price may reach $62k in the medium term.

However, the main accelerants sparking this kind of demand will be institutions channeling their billions into digital assets, including it as part of their investment strategy.

Bitcoin (BTC) Market Movers

Following MicroStrategy’s path, Tesla has invested $1.5 billion in Bitcoin. Their 10-k filing with the U.S. Securities and Exchange Commission (SEC) reveals.

$TSLA adds $1.5 billion #Bitcoin to its balance sheet. Buckle up, we're passing the Moon and heading to Mars! 🚀

— Tyler Winklevoss (@tyler) February 8, 2021

The most valuable automotive company said they are buying BTC to maximize their returns and for diversification. Besides investing, they also expect to start accepting Bitcoin as a mode of payment. In their assessment, the coin is sufficiently liquid.

By investing $1.5 billion in BTC, the firm is pouring less than 10 percent of its cash holdings into digital assets. SEC data shows that Tesla held $19 billion in cash by the end of 2020.

The surge in Bitcoin, ironically, pushes the coin’s market cap above Tesla’s:

BREAKING: #Bitcoin is now the 9th largest asset in the world, surpassing Tesla in market cap pic.twitter.com/eBnwAaQhAj

— Bloqport (@Bloqport) February 9, 2021

Bitcoin Price Prediction

The BTC/USD price is trading within a bullish break-out pattern with double-digit gains. Prices are surging above $42k with relatively high trading volumes as bullish bars band along the upper BB. This suggests high momentum in lower time frames, explaining the divergence.

From the daily chart, and as mentioned above, every low is technically a loading opportunity for buyers.

Technically, the next feasible target is $50k, a round number. However, pasting the Fibonacci extension tool on Q4 2020 to the $42k trade range places possible bull targets at $62k. It is the 1.618 Fibonacci extension level.

An unexpected crash below $42k will slow down buyers though the trend will remain bullish.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.