Tesla Invests in Bitcoin, to Start Accepting BTC Payments Too — Analysis, 15 Feb
On February 8, Tesla announced it had invested $1.5 billion in Bitcoin, thereby converting part of its cash on the company balance into cryptocurrency. Moreover, the electric vehicle company highlighted it would start accepting Bitcoin as payment for its cars.
The crypto market reacted immediately to the positive news. The price of Bitcoin surpassed its previous local high of $42,000 and reached levels close to $50,000 later through the week.
Interestingly, this past week, Tesla was not the only big player joining the cryptocurrency world. On February 11, the Bank of New York Mellon, one of the oldest banks in the United States, announced the creation of a digital assets unit that will integrate cryptocurrency:
On February 13, Bloomberg published a post stating that Morgan Stanley, another significant player from the banking world, is going to pour $150 billion in cryptocurrency:
With such kinds of news one thing is becoming clearer — the market is entering the phase of the institutional investors, a phase in which big companies, hedge funds, banks will start buying and accumulating cryptocurrency. Therefore, it seems that the crypto market is just at the very beginning of a new bull lifecycle.
After the extremely bullish week, the Monday market starts with a small correction. At the time of writing, according to Coin360.com, one Bitcoin costs €39,579.83 (-1.86%), one Ethereum — €1,471.68 (-2.86%), and one LINK — €27.52 (-1.84%):
Now let us have a look at the price charts of the leading cryptocurrencies against the euro.
BTC/EUR
In the 4-hour chart, BTC/EUR continues to increase after exiting the Descending Triangle:
We consider three potential scenarios for the near future of the price chart of Bitcoin. In a bullish scenario, BTC/EUR reaches the level of approximately €44,200. This level is calculated by adding the triangle’s height to the level of the highest high in the triangle. Usually, traders apply this approach to set the highest price target once the price exits the Descending Triangle.
In a neutral scenario, BTC/EUR continues to consolidate and move sideways at the current level of approximately €38,100. This level is calculated by adding the triangle’s height to the level of the breakout point — the point where the price chart exited the triangle.
In a bearish scenario, BTC/EUR drops to the level of the highest high in the triangle or approximately €34,000. At this level, the price of Bitcoin may receive solid support. That’s why we view this level as a support level.
In our estimation, for this week, the most likely scenarios are the bullish and the neutral ones.
ETH/EUR
In the weekly chart (1W), last week ETH/EUR formed another bullish candlestick with a local high surpassing the previous one and a local low above the previous one. Therefore, the bullish sentiment remains in place:
Since the uptrend in the weekly chart continues, it is worth keeping an eye on the Ascending channel in the 4-hour time frame as well.
As can be seen from the chart, ETH/EUR is moving forward within the trajectory of the channel. The 30-day Moving Average is heading upwards as well. Therefore, it is worth waiting for a favorable moment to open long trade. In case the price of Ethereum drops to the lower line of the channel, a subsequent rebound might be the right moment to enter the market.
LINK/EUR
Last week, the price of Chainlink recorded a new all-time high at a level close to €30 per one digital coin. This price increases added another solid bullish candlestick after the Bullish Engulfing formation in the weekly chart (1W) of LINK/EUR:
Because of the significant price increase, LINK/EUR is trying to accelerate the uptrend and change the trajectory of the Ascending channel in the 1-hour chart (1H):
The new channel is still at its very beginning. If in the next few days the trajectory of the channel solidifies, then traders will start opening long trades within the new channel.
Stay updated on everything Bitcoin-related with Bitvalex. Bitvalex is a licensed digital wallet and cryptocurrency exchange; learn more about us and blockchain technology and sign up to use our services.
The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex’s content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.
Originally published at https://bitvalex.com.
Check out our new platform 👉 https://thecapital.io/
https://twitter.com/thecapital_io
https://medium.com/media/3b6b127891c5c8711ad105e61d6cc81f/href
Tesla Invests in Bitcoin, to Start Accepting BTC Payments Too — Analysis, 15 Feb was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.