bitcoin price shorters beware
Bitcoin,  Markets Report

Bitcoin Shorters Beware! Market lies in wait for $50,000

Thin resistance between spot price and the $50,000 hurdle amid more public endorsement of corporate Bitcoin buying

Bitcoin held on to its recent gains on February 10 as traders waited for confirmation of a move to $50,000 and higher.

Data from price trackers including CoinMarketCap and TradingView showed BTC/USD consolidating in a tightening range on Wednesday as the fallout from earlier events continued to ricochet across markets.

Cramer: Firms not buying BTC is “almost irresponsible”

After Tesla announced that it had purchased $1.5 billion of Bitcoin on Monday, volatility returned to Bitcoin, with moves up and down of $1,000 still commonplace at press time. 

Broadly thought to be a watershed moment for the cryptocurrency, Tesla’s buy-in had proponents arguing that other big tech firms would have no choice but to follow. Thereafter, naysayers voiced caution, arguing that Bitcoin’s volatility itself would stop smaller outfits converting a significant portion of their treasury.

Speaking to mainstream media, however, Michael Saylor, CEO of MicroStrategy, which itself purchased over 70,000 BTC, said that shareholders would look at Tesla and make the obvious choice.

“If you’re looking out for the long-term interest of your shareholders, I think they’d prefer if you double their money every six months than lose 75% of their money with a guarantee over the next eight years,” he told CNN, referencing the steady decline in purchasing power of the U.S. dollar.

Saylor was not alone. Joining him in sweetening their view on Bitcoin was Jim Cramer, the outspoken CNBC host who as recently as January had described it as “no different than an entirely erratic stock.”

“I think it’s almost irresponsible not to include it—every treasurer should be going to boards of directors and saying, ‘Should we put a small portion of our cash in Bitcoin?’” he told the network.

“It seems to be an interesting way to hedge against the rest of the environment—nice hedge against fiat currency.”

bitcoin price shorters beware
BTC/USD holds its own after the Tesla move. Source: TradingView

Traders wary of white swan event

Against that backdrop of continued belief in its longevity, short-term price prognoses from traders contained hardly a trace of bearishness as the week continued.

“I am convinced. Seeing news like this today with #Bitcoin, and maintaining a bearish stance, or even still prioritizing looking for the breakdown, is not a choice…. It’s a sickness,” popular Twitter-based trader Cantering Clark wrote.

Fellow trader Josh Rager was equally confident. 

“It’s a bull market,” Rager told Twitter followers. “Don’t try to overthink this.”

Anticipation was specifically building over when Bitcoin would reach $50,000 and whether such a level could hold out against sellers.

A look at orderbook activity on major exchange Binance showed that the majority of sell positions were lined up at $49,500 and higher, with buyers lying in wait at $46,000. 

bitcoin price shorters beware
Binance BTC/USD buy and sell levels. Source: Material Indicators

“Shorting carries extra risk (at the moment), trader Loma added in a warning to those doubting upside chances. 

“Even if the chart looks overextended, just know that if Elon or Tesla decide to tweet about their investment in $BTC, shorts would get blown up within the hour regardless of what that candle was looking like prior.”

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.