Bitcoin on a Bullish Run: Why BTC Could See More Upside

BTC/USD closed at $44,359.0 after placing a high of $44,479.0 and a low of $41,715.0. On Monday, BTC/USD extended its gains and reached its highest since January 5. The second wealthiest man in Russia, Vladimir Potanin, has claimed that a digital central bank currency might displace private cryptocurrencies. He said that the CBDC could promote new technologies while Bitcoin and other altcoins are unreliable products that expose investors to risk. On the other hand, a CBDC would be highly centralized and controlled by Russia’s central bank, and that is why the institution should focus on it.

The billionaire is also the 10th wealthiest man in the world and is a supporter of digital services and payments. He has a belief that digital assets are part of the future financial revolution. According to Potanin, metal coins were replaced by paper money, and transactions became cashless. Digital financial assets are just the next stage. These comments had a mixed impact on BTC/USD prices on Monday.

On the other hand, in its annual filing with the US Securities and Exchange Commission, Tesla Inc. has said that it had invested $1.50B in Bitcoin last year. It registered about $101 million in impairment losses last year due to the value of BTC. The declining prices of bitcoin added to the company’s income. This news also weighed on BTC/USD and limited the gains in cryptocurrency. Meanwhile, electricity suppliers in Russia have registered a significant rise in power consumption in residential areas, and this surge is being blamed on cryptocurrency mining. As a result, Russia’s growth in energy consumption has been reported due to grey mining.

Reports suggested that the mining rigs were transported to Russia from China through planes and trucks as China banned cryptocurrency mining. The mining equipment is now available almost free of cost, which has prompted residents of Irkutsk Oblast to set up mining farms at their homes. This has added to the power grid load and led to frequent breakdowns and blackouts. This report also added a negative impression on the rising prices of BTC/USD.

However, the leading cryptocurrency experienced a positive day on Monday after reports suggested that NASDAQ would list Valkyrie’s Bitcoin mining ETF on Tuesday, the next trading day. According to a filing with the SEC, the new Valkyrie Bitcoin Miners ETF has received approval for listing on the Nasdaq exchange. The ETF will start trading on the exchange on February 8th under the ticker symbol “WGMI.”

Furthermore, Canada’s KPMG, an independent member affiliated with KPMG International, one of the Big Four accounting firms, bought Bitcoin through Gemini for its corporate treasury. The company said that the investment illustrates the firm’s outlook on emerging technologies underpinned by blockchain. However, the company did not disclose the size of the purchase of BTC. This news also added to the rising prices of BTC/USD on Monday.

Daily Technical Levels

Support Resistance

41486.0 43045.0
40549.0 43667.0
39927.0 44604.0
Pivot Point: 42108.0

Bitcoin (BTC/USD) Technical Outlook

Bitcoin price gained bullish momentum after closing above $40,000 for the first time in several sessions. BTC even broke through the $42,000 resistance level to move further green. The recent upward trend has gained traction above the $43,000 level. Finally, the price surpassed $44,000 and settled above the 100 hourly simple moving average. The price has formed a high near $44,528 and is now consolidating gains. It is currently trading above the 23.6 percent Fib retracement level of the recent rise from the $41,141 swing low to the $44,528 high. On the hourly chart of the BTC/USD pair, a connecting bullish trend line is forming with support near $43,500.

If Bitcoin does not begin a new upward trend above $44,500, it may begin a downward trend. On the downside, the trend line and the $43,750 zone provide immediate support. The first significant support is seen near the $43,000 level. It is close to the 50% Fib retracement level of the recent rise from the $41,141 swing low to the $44,528 high. If the price breaks below the $43,000 support, it may fall towards the $41,200 support and the 100 hourly simple moving average. Good luck!