Bitcoin Market Update
Since the release of the stimulus last year, we have seen parabolic moves from Bitcoin and the entire market, jumping nearly 10x from the March 12, 2020 dump. With this movement and the optics of companies like Microstrategy, Square, and Elon Musk promoting their Bitcoin purchases, many are interested to know if this pump is sustainable or if we are about to run out of juice just like late 2017.
Stimulus and Bitcoin
It has had a powerful consequence on Bitcoin and Crypto markets as a whole but it is not this large one-off event that some people are expecting. People are receiving their checks in staggered releases across various banks. The result of this that we are seeing is smaller pumps such as the one on March 17th where Bitcoin and various assets pumped 10% on the daily as 90 million americans received their stimulus. The price of a $1200 stimulus check received on April 15, 2020 would be worth $10,400 as of March 17, 2021 if it was invested in Bitcoin. Given this, envision these gains to continue to push the market forward moving into summer as more people look to invest their checks in more speculative assets, however it won’t be the overnight sensation that people are thinking.
$60K Bitcoin: market top?
$60K is not only an important psychological resistance level but also technical. We are seeing this level tested over and over with higher lows on the daily timeframe. On the weekly, there has been a large bull flag channel forming that indicates a larger push upwards once it is broken. BTC does tend to struggle breaking through resistances that are both psychological and technical, but with incoming liquidity from stimulus and unemployment benefits we should see this bull trend continue through the summer.
How will Bitcoin break resistance at $60K and bring the rest of the market with it?
A quick look to CoinGecko at the weekly best performers as of April 2nd shows that out of the top 100 currencies listed, 71 of them are performing better than Bitcoin. With altcoins dominating in a similar way week after week, we predict Ethereum and the strength of DeFi to pull Bitcoin to fresh all time highs during the typically green month of April. Just how high? $65K? $70K? That is for the markets to decide. But for us at R.F. Capital, our sights are set on an expansive few months ahead.
