The Bitcoin price leads the performance chart, steady above $46k after a recoiling on the last few days. Behind this surge is news of Elon Musk’s Tesla purchasing $1.5 billion worth of BTC.
The Tesla BTC Pump
The leading electric automobile company said they were purchasing the coin to diversify their income streams and hedge against inflation.
Beyond purchasing the digital gold, the company said it plans to accept BTC. The move will, according to analysts, not only increase Tesla’s revenue but make it easier for Bitcoin holders to own the car.
From how Bitcoin is designed, they won’t have to channel their funds through a bank. Instead, they will deposit funds to the stated address.
However, the company will likely work with a partner, perhaps a payment processor on this end.
Twitter may Hold Bitcoin
Meanwhile, Jack Dorsey and Twitter are also considering paying their staff and vendors in BTC should they ask.
According to their CFO, Ned Segal, they have also studied Bitcoin. They may consider adding the digital asset to their balance sheet as part of their cash treasury. During CNBC’s SquawkBox, he said:
“We’ve done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in bitcoin, how we might pay a vendor if they asked to be paid in bitcoin, and whether we need to have bitcoin on our balance sheet should that happen. We want to be thoughtful about it over time, but we haven’t made any changes yet.”
Bitcoin Price Prediction
The BTC/USD price is up 25 percent week-to-date, building on early this week’s gains.
In a bullish breakout pattern, the path of least resistance is northwards. Accordingly, buyers are refining their entries, buying the lows in expectation of more price gains.
From the daily chart, bulls’ bars are banding along the upper BB revealing strong momentum in lower time frames. Specifically, the reversal of Feb 10 bear candlestick in bull trend continuation is a shot in the arm for traders.
With increasing trading volumes and favorable candlestick arrangement, the path of least resistance has been charted. The odds of the BTC/USD price printing a new all-time high of $50k-or better is, therefore, elevated.
In the immediate term, $42k—Jan 2021 highs are the support level. Based on Dec 2020 and Jan 2021 trade range, buyers should be aiming at $50k and $62k—this level flashes with the 1.618 Fibonacci extension level of the aforementioned trade range.
Chart Courtesy of Trading View
Disclosure: Opinions Expressed Are Not Investment Advice. Do Your Research.
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