Bitcoin 50K: What Twitter Has to Say as the Bitcoin Rally Continues
Bitcoin (BTC) passed 50K and users on Twitter (NYSE:TWTR) can’t help but talk about the cryptocurrency as it rises higher.
The major push in bitcoin price comes after several companies have expressed interest in the cryptocurrency. Adding to that are expectations that more growth could be on the way. The source of those hopes is recent news and rumors surrounding the digital currency today.
While that’s all fine and dandy, investors in bitcoin should still have concerns even after it hit 50K. For example, bitcoin has a habit of taking a fall just about any time this kind of positive momentum takes place. That means investors may want to be wary about jumping into the crypto right now.
Now let’s take a look at what people on Twitter as saying about the bitcoin 50K rally on Wednesday.
#bitcoin 50k is about to become the new normal
— Tyler Winklevoss (@tyler) February 17, 2021
Buying #bitcoin at 50k in 2021 is like buying #bitcoin at 3k in 2017.
— Altcoin Daily (@AltcoinDailyio) February 17, 2021
With bitcoin at $50k, a good moment to reminisce on the times circa 2011-12 when FirstMark employees would give each other 1 bitcoin as a < $20 Secret Santa gift at holiday parties
— Matt Turck (@mattturck) February 16, 2021
#bitcoin hit $50k
I feel like last year it was just $4k
… oh wait
… that was last year
— CJtheSmartGuy (@cjthesmartguy) February 16, 2021
Bitcoin is at $50,000 and the government is about to flood the market with another $1.9 trillion.
I wonder what is going to happen next…
— Pomp 🌪 (@APompliano) February 16, 2021
Investors that want to know more about the latest bitcoin news can check out the following articles from InvestorPlace.
BTC was up 3.3% as of Wednesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Article printed from InvestorPlace Media, https://investorplace.com/2021/02/bitcoin-50k-what-twitter-has-to-say-as-the-bitcoin-rally-continues/.
©2021 InvestorPlace Media, LLC
William White, InvestorPlace Writer
Bitcoin (BTC) Outlook: BTC/USD Challenging $50,000, Where to Next?
- Tesla, Mastercard and BNY Mellon’s endorsement of Bitcoin as a mainstream financial asset may intensify capital flows.
- Rising inflation expectations, loose monetary policy conditions and fiscal stimulus prospects could also put a premium on the anti-fiat asset.
- However, recent price action suggests that a short-term pullback could be in the offing.
As mentioned in previous reports, Tesla’s $1.5 billion investment in Bitcoin and its plans to begin accepting the popular cryptocurrency as a form a payment, has fostered the anti-fiat asset’s surge higher in recent weeks. Indeed, the digital currency has climbed over 74% for the year and looks set to continue gaining ground on the back of loose monetary policy conditions and the expectation of further fiscal support out of the US.
Moreover, Bank of New York Mellon’s statement that it would treat BTC the same as any other financial asset and Mastercard’s commitment to integrate Bitcoin into its payment networks, may further validate the cryptocurrency as a mainstream asset and intensify capital inflows in the near term. Here are the key levels to watch for BTC/USD.
BTC/USD weekly chart created using Tradingview
The long-term outlook for Bitcoin remains overtly bullish, as price tracks firmly above all six moving averages, and the MACD indicator surges to its highest levels on record.
However, bearish RSI divergence suggests that the relentless surge higher could be running out of steam. With that in mind, failing to gain a firm foothold above 50,000 could trigger a short-term pullback to former resistance-turned-support at the January high (41969).
Breaching that opens the door for sellers to drive the cryptocurrency back to psychological support at the 30,000 mark. That being said, an extended pullback seems relatively unlikely given the RSI remains comfortably above 70, and the marked steepening of all six moving averages.
Therefore, a weekly close above 50,000 would likely intensify buying pressure and carve a path for price to challenge the 261.8% Fibonacci (54866). Clearing that brings the 300% Fibonacci (62402) into the crosshairs.
BTC/USD daily chart created using Tradingview
Zooming into the daily timeframe suggests that a short-term pullback could be in the offing, as a series of Doji and Hammer candles form just shy of the psychologically imposing 50,000 mark.
Bearish divergence on both the MACD and RSI also hint at fading bullish momentum, and could ultimately encourage would-be sellers if price slips back below the 8-EMA (47363).
Slicing through the February 15 low (45730) probably triggers a short-term correction back towards former resistance-turned-support at the January high (41969).
Alternatively, a daily close above 50,000 would likely signal the resumption of the primary uptrend and bring the 261.8% Fibonacci (54866) into focus.
The IG Client Sentiment Report shows 79.17% of traders are net-long with the ratio of traders long to short at 3.80 to 1. The number of traders net-long is 7.11% lower than yesterday and 0.80% lower from last week, while the number of traders net-short is 8.29% higher than yesterday and 5.36% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall.
Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Bitcoin trading bias.
— Written by Daniel Moss, Analyst for DailyFX
Follow me on Twitter @DanielGMoss
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Author: Daniel Moss
ForexLive Asia FX news wrap: Bitcoin gave $50K a nudge again in Asia time
Cost of a single Bitcoin exceeds $50,000 for first time
SILVER SPRING, Md. — The seemingly unstoppable rise of Bitcoin continued Tuesday with the cost of a single unit of the digital currency rising above $50,000 for the first time.
The price of Bitcoin has risen almost 200% in the last three months and its volatility was on display Tuesday. After rising above $50,600, it fell back to $48,674 at 2:15 p.m. ET. At that price, with about 18.6 million Bitcoins in circulation, Bitcoin has a market value of nearly $907 billion.
Bitcoin is rallying as more companies signal the digital currency could eventually gain widespread acceptance as a means of payment. The vast majority of those who have acquired Bitcoin have treated it as a commodity, like gold, with few places accepting it in exchange for goods or services.
Companies have been leery because of Bitcoin’s volatility.
Last week, however, the electric car company Tesla sent a tremor through the digital currency markets, saying that it was buying $1.5 billion in Bitcoin as part of a new investment strategy.
Here’s a brief look at the bitcoin frenzy:
How Bitcoin works: Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who “mine” them by lending computing power to verify other users’ transactions. They receive bitcoins in exchange.
The coins also can be bought and sold on exchanges with U.S. dollars and other currencies. Some businesses also accept bitcoin, but its popularity has stalled out in recent years.
• • •
Using Bitcoin for purchases: The digital currency has become popular enough that more than 300,000 transactions typically occur in an average day, according to bitcoin wallet site blockchain.info. Still, its popularity is low compared with cash and credit cards.
Besides Tesla, few companies have said they’ll accept Bitcoin as payment. Overstock.com appears to accept Bitcoin for most listings on its website, including cameras, vacuums and clothes. PayPal allows its accountholders to buy, sell and hold four cryptocurrencies, including Bitcoin — but you can’t use it to pay people, at least not yet.
Author: By MATT OTT Associated Press | Wednesday, February 17, 2021, 12:05 a.m.
Bitcoin Could Rise $20,000 Prior to Overbought Territory
After a year-to-date return of over 80%, some analysts warn that Bitcoin is approaching overbought territory. Still, a particular on-chain metric suggests that BTC is primed for another massive rise.
Bitcoin’s market value has risen by nearly 60% since the beginning of the month. BTC was recently able to reach a new all-time high of $52,800 as a new wave of retail investors flocked to the coin.
More than 20,000 new addresses have joined BTC’s network each day over the past five weeks, signaling a spike in user adoption. It appears that Tesla’s $1.5 billion Bitcoin investment put Bitcoin in the spotlight as trust in the global financial system erodes.
Despite the massive gains that BTC has posted over the past month, some analysts believe that a major correction is underway.
JP Morgan’s Global Market Strategist Nikolaos Panigirtzoglou has suggested that Bitcoin “looks unsustainable” at the current price levels. Panigirtzoglou maintains that an inelastic supply of Bitcoin led to a price premium for both “real money” and “speculative” investors, while retail interest dwarfing the institutional inflows.
For this reason, the analyst expects that volatility would need to decrease to sustain the recent upswing.
Despite the grim worst-case scenario, Bitcoin looks fundamentally strong. Whales have entered a buying spree, depleting the amount of Bitcoin available on exchanges and trading platforms. Market behavior of this type reduces the selling pressure behind the cryptocurrency, consequently capping its downside potential.
Additionally, the MVRV Z-Score suggests that Bitcoin has plenty of room to go up before it reaches overbought territory. This fundamental metric represents the ratio between the difference of Bitcoin’s market capitalization and realized capitalization and the standard deviation of market capitalization.
Each time this on-chain index rose above a value of 9 over the past ten years, it served as a sell signal leading to a steep correction.
For instance, the MVRV Z-Score rose to a high of 9.80 in mid-December 2017 when Bitcoin peaked at nearly $20,000. Following this milestone, Bitcoin prices suffered an 84% correction while the MVRV Z-Score was able to reset.
Now that Bitcoin is trading at a record high, the MVRV Z-Score is hovering at a value of 6.60. If this indicator proves to be as accurate as it was in previous instances, BTC could climb another $10,000 to $20,000 before the market becomes overheated.
Technical analyst Philip Swift believes that the ongoing bullish cycle may look similar to the one in 2013, when Bitcoin hit the MVRV Z-Score’s red zone twice before a significant retracement occurred.
Swift maintains that BTC could even reach three local tops during this cycle before it enters a meaningful corrective period.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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Bitcoin: What You Need To Know
The best definition to understand Bitcoin and other digital currencies consists of two steps. In the first place, they are all tough to understand as they go through frequent value fluctuations all over the map which confuses any experienced investor to step into the market.
Have a look at the value of the cryptocurrency market which dropped by $150 billion in 24 hours last week. But besides its frequent price fluctuations, investors have been showing a constant interest to invest their money in Bitcoin ever since it was created in 2009.
More and more businesses are boarding on the bandwagon of Bitcoin which as we see that more than one-third of small and medium-sized businesses have started to accept it as payment. Businesses are jumping on the Bitcoin bandwagon too, with more than one-third of small- and medium-sized businesses accepting it as payment. Leading businesses like At&T, Microsoft, and overstock have started to adopt it. Even Wikipedia also accepts donations in Bitcoin.
So it’s time to see whether Bitcoin is getting rich quick scheme or just a waste of time and money? Let’s talk about it .
Bitcoin is now a popular digital currency, it has no physical existence like printed bills or coins. it’s all done over the internet using complex computing and coding. It is as worthy as gold which could be used to pay or exchange for goods and services.
Presently over 2,000 cryptocurrencies including Bitcoin are there around the internet and most of them are designed on Bitcoin’s concept: anonymous and nationless digital cash. These include Ethereum, Ripple’s XRP, Litecoin, Tether, and Bitcoin Cash. But not a single coin among these as accepted as their prototype, Bitcoin.
The users of Bitcoin can easily exchange these coins for goods and services or trade them for cash. It is an electronic payment system where bitcoin system apps use PayPal to send money. The two major operations of Bitcoin mining and trading are done anonymously, making the cryptocurrency scene prime for cyber crimes, like phishing and blackmail schemes. And as any bank or state does not regulate Bitcoin the situation become more favorable for scammer and hackers
Bitcoin is becoming an all-time favorite in the cryptocurrency market. It was successful to build credibility in 2017 when a large financial firm created a futures exchange for the currency.
It is like a fancy investment lingo for a central marketplace where you buy and sell futures contracts. These futures contracts allow a buyer or seller to buy or sell a certain type and amount of an asset (like gold) at a certain price. It also depends on people’s choice of what they are ready to pay for these assets. They also help determine the value of the asset. Talking about Bitcoin futures exchange, these facilitate investors to participate in the rise and fall of its value without actually having to buy the currency. Bitcoin became a trustworthy coin in 2020 when several investment companies started to accept it and began to buy and hold bitcoins as assets.
To buy Bitcoins, a digital account is required on any exchange lije Coinbase, CEX.IO, or Kraken to purchase a bitcoin. PayPal has also started to accept Bitcoin to buy, hold and sell. These accounts act as a digital wallet. They want you to put your dome of the basic personal information and money and you can buy bitcoins. The process is scarily easy.
This is the procedure through which you can get new bitcoins. It’s purely technical and complicated. But with hard efforts, you get successful invalidating a block (one megabyte) of bitcoin transactions by solving a numeric problem to get paid. A miner who’s lucky enough to jump through these hoops is paid 6.25 bitcoin per block ($100,000). The creator of Bitcoin has put certain limits on the overall supply to 21 million, but the last bitcoin won’t be mined until sometime in 2140.
Bitcoins worth could be determined by whatever buyers are willing to pay for it. A coin free from any governing authority—as we have for our local currencies or the correlation to earnings like we have for stock prices—it’s really up to buyers. So this gives rise to its risk factor that comes with the cryptocurrency world. Having no consistent tool for pricing is one of the major reasons we see such huge swings in a bitcoin’s worth.
So we can see despite being a new star rising in the cryptocurrency sky, Bitcoin is not at all free from its prospects to get down in value anytime. With its volatility and frequent price swings, it’s recommended that you invest in Bitcoin after complete homework and extensive research.