Roses are red, violets are blue, Bitcoin hits $49K and a new all-time high too

The price of bitcoin (BTC) reached an all-time high on Valentine’s Day, Feb. 14, hitting a new record of over $49,000 and reaching $49,344 on Coinbase.

There are three main reasons for bitcoin’s jump to a new record high: an influx of big-name Stablcoin, a clean break of the $38,000 resistance zone, and an extended period of consolidation.

BTC/USD 4-hour price chart (Coinbase). Source: TradingView.com.

The influx of stblkoin was crucial

In recent days, although bitcoin has consolidated below $38,000, blockchain analysts have pointed to a steady increase in Stablock inflows.

According to analysis platform CryptoQuant, Stablecoin’s supply ratio (SSR) has risen significantly from the midpoint ($30,000).

The SSR indicator represents the ratio of the market capitalization of bitcoins to the total market capitalization of boxes.

If the price of bitcoin is rising along with the SSR ratio, it means that it is likely being fueled by migrated capital coming back into the market.

stabilized alcohol supply factor. Source: CryptoQuant

This trend is very bullish because it shows that the rally was not driven solely by an overvalued futures market. In fact, it was cash market demand that drove the upward trend.

In addition to the high stable cap ratio, analysts also point to less selling pressure from mining companies.

It’s also interesting to note that miners have not been in such a hurry to sell their #Bitcoin over the past two weeks.

Either they’re convinced they’re doing better, or they’re running out of bullets.

– Lex Moskovsky (@mskvsk) February 12, 2021

The combination of reduced trading pressure from miners and growing inflows of stablecoins into the exchanges has catalyzed bitcoin’s ongoing recovery.

Net deficit $38,000

Bitcoin has long been consolidating below the $38,000 resistance zone. This posed a risk to bitcoin’s short-term bullish cycle.

When bitcoin price remains below a key resistance area for an extended period, the likelihood of BTC dropping to a lower support area to take advantage of lower liquidity increases.

That’s part of the reason why bitcoin steadily dropped to as low as $44,000 before finally peaking above $38,000.

A long consolidation has been beneficial for BTCprice breakout

A relatively long consolidation phase usually leads to two scenarios: a major breakout or a major breakout.

If bitcoin rises without strong fundamentals to support the rally, there is a good chance that the consolidation will lead to a deep correction.

But in the case of bitcoin, the consolidation phase below $38,000 over the past three days has been helped by growing inflows of stablcoins, a high premium for the currency’s base and generally high trading volume in the cash and futures markets.

So despite the futures market still having a high leveraged ratio and being crowded, BTC has managed to break through a resistance zone.

For the foreseeable future, there are several reasons that make a rally sustainable. First: The influx of stalls is not diminishing.

Second, today’s rally has reversed the bear market structure into a short-term bullish trend on the lower time frames.

As long as bitcoin remains above the $38,000 level, which has become a support zone, the short-term structure of the bull market remains intact.

Related Tags:

bit coin price,bitcoin stock price,how much are bitcoins worth,cryptocurrency prices,Privacy settings,How Search works

Recent Articles

Bitcoin Price Captures a $64,895 High, Pantera CEO Says ‘BTC Rally Exactly Like Previous Halvings’ – Markets and Prices Bitcoin News

Over the past 24 hours, cryptocurrency markets have exploded, with billions of dollars flowing into the crypto economy. Bitcoin reached a new all-time high...

NFTs Come to Live in Uquid Shop as NFTD – Press release Bitcoin News

Press Release PRESS RELEASE. Uquid Shop, the largest e-commerce platform using digital assets, is ready to buy and sell digital art, social and digital content,...

Defi Trading Platform Support 100X Leverage. No KYC. No Gas Fee – Press release Bitcoin News

Press releaseNo gas tax PRESS RELEASE. YFX.COM is the world’s first decentralized inter-chain exchange for perpetual contracts. Although there are other trading platforms that offer...

US Government Concerned China’s Digital Yuan Could Threaten Dollar as the World’s Dominant Reserve Currency

The US government is reportedly concerned that China’s digital yuan could threaten the status of the US dollar as the world’s leading reserve currency....

South Korean crypto traders are pivoting to ‘smaller cap’ altcoins

South Korea’s four major cryptocurrency exchanges – Bithumb, Korbit, Upbit and Coinone – are showing a notable cooling in their exposure to bitcoin (BTC). At...

Related Stories