Tips for traders, 23 February 2021
Recent tweets by Elon Musk and Michael Saylor of MicroStrategy drove the price of Bitcoin to its highest in history on Sunday (21 Feb), $58,350. This has certainly created worries many traders and investors as the upward movement has been unprecedentedly strong. In addition, the recent information that MicroStrategy has sent its holdings to CoinBase has created another level of worry that brought the price of Bitcoin down to around $50,000. The good news is that companies can’t easily sell their Bitcoin in the free market because this would affect the price too much.
Currently BTC is still in its bullish mode and there’s no clear indication that this will change. According to the recent movement since the end of January until last Sunday, we see that there’s a potential pullback for BTC itself which can make it more robust. Currently, we see the potential for BTC to retrace further, possibly below 40k. If it does, we will be able to see BTC sit at around $36,600-39,800. Meanwhile, make sure to manage risk.