Bitcoin looked increasingly apt to tackle $50,000 resistance on February 11 after BNY Mellon announced that it would hold the cryptocurrency on behalf of asset managers.
Bitcoin should clinch key Fibonacci level
Having hit upwards of $48,000 on Monday thanks to Tesla’s $1.5 billion buy-in, Bitcoin saw sellers line up closer to the psychologically significant $50,000 barrier. Thereafter ensued a consolidation period which briefly saw a return to near $43,000 in the past 24 hours.
A rebound took BTC/USD higher than ever, but worries remained about whether the next move may end up more bearish.
Analyzing the past two months’ price action, popular Twitter trader Nebraskan Gooner highlighted what he called Bitcoin’s “textbook” parabolic move. The chances of a riposte—a parabolic breakdown—were thus firmly on the cards unless Bitcoin could put in more significant upside.
An accompanying chart demonstrated how Bitcoin had put in surges and consolidations, the latter known as “bases,” typical of a parabolic rally.
“I’m not sure how nobody is talking about this. So I’m going to talk about it. Textbook parabolic move up with 4 bases and price doubling very quickly after base 3. Parabolic breakdowns can make a higher high and still be relevant unless breaking above the 1.337 fib,” he wrote in a series of tweets on Wednesday.
“Break above 1.337 fib and a mega bullish breakout ensues. I think the biggest thing here is price doubling rather quickly after base 3. Probably the most important part of this having a possibility of being real.”
At the time of writing, the Fibonacci line referred to lay at $46,831, a level which Bitcoin had managed to tackle at press time.
A look at Binance orderbook activity meanwhile showed selling pressure had increased at $48,000, with $47,000 and $50,000 also popular for sellers. Buy support, on the other hand, was lacking much above $41,000.
Cardano bucks trend to near $1
Away from Bitcoin, altcoins followed the largest cryptocurrency in cooling off after their latest rally on the day.
An exception was Cardano, which in contrast to the rest of the top ten cryptocurrencies by market cap put in solid gains to take it over $0.95 for the first time.
“2017 was just a small cycle, just the first awareness case,” a bullish Michaël van de Poppe forecast in a dedicated Cardano analysis.
“We’re just heating up in the next cycle at this point and I’m quite sure that our cycle’s going to take longer, which will mean that prices will accelerate heavily—far higher than what we saw in 2017.”
Van de Poppe added that a 10x price expansion was possible for ADA/USD, but that the altcoin at the current stage was not a buying opportunity.
“Cardano is not an entry right now if you’re looking at it from a trader’s perspective,” he said, suggesting that the altcoin market more broadly needed to come down first.