Bitcoin’s (BTC) price has been consistently rallying in the past few weeks, reaching its latest new high of around $57,500 on Feb. 20.
The week has seen more bullish news such as the first German-listed company allocating its cash reserves to BTC as well as the launch of the first Bitcoin ETF in Canada, which traded over $220 million in its debut.
Just for a day
— Elon Musk (@elonmusk) February 19, 2021
Such news is fueling the price of Bitcoin, while Elon Musk has also embraced the latest “laser eye” meme to the joy of hodlers who are itching for a $100,000 BTC price. However, the next major point of interest is at around $63,000, and this could be reached relatively soon if Bitcoin can hold above a few key support levels.
Bitcoin continues rally by holding critical levels
The four-hour chart for Bitcoin shows a clear upward path since it broke out of the range construction between $30,000 and $42,000. Since then, crucial levels at $44,000 and $50,000 held as support, which served as the launchpad for the current highs above $55,000.
This run is also being driven by the decreasing reserves on exchanges. This is very similar to the end of 2016 when more Bitcoin was withdrawn from exchanges than deposited. These withdrawals mean that people want to hold their Bitcoin for the long term, indicating strong demand and low time preference.
During the recent rally, the first Fibonacci level at 1.618 was reached. Now, Bitcoin is nearing the second point of interest at the 2.618 Fibonacci level around $63,000.
On the downside, the $50,000 level is crucial on the four-hour chart. If that sustains support, there’s a high chance Bitcoin’s price will reach that level next. However, if it loses $50,000, more downside to $43,000 can be expected.
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