Bitcoin price sets a new record above $49k

Bitcoin price sets a new record above $49k

BTC/USD rose to $49,714, just shy of the highly coveted $50,000 level

Bitcoin (BTC) came extremely close to hitting $50,000 this weekend as bulls soared from weekly lows of $38,870 to reach a new all-time high of $49,714.

Although the benchmark cryptocurrency somewhat eased off the upside momentum on Monday morning, briefly dipping to lows of $45,914, bulls have looked to retake control. At the time of writing, BTC price is trading at $47,512.

Bitcoin price surges as big-money flows in

The stunning upsurge in Bitcoin price follows extremely bullish sentiment in a week in which MasterCard announced future support for Bitcoin among other select coins.

On Friday, Twitter CEO Jack Dorsey and rapper Jay Z also added to the bullish outlook as they revealed an upcoming Bitcoin development fund focused on adoption in India and Africa. Before that, Tesla’s announcement of a $1.5 billion BTC holding had sent prices near the $50k level.

A look at the technical picture for Bitcoin suggests the cryptocurrency is set to continue its stunning performance in 2021.

CryptoQuant CEO Ki Young Ju predicts another leg up, pointing to the increased stablecoins inflows into exchanges.

“If you’re a long-term investor, now is the time to buy $BTC. Not sure how many corrections would be along the way, but the on-chain indicator says there are enough stablecoins in exchanges compared to Bitcoins to get another leg up”, he explained.

BTC price chart showing stablecoins exchange inflow. Source: CryptoQuant

The outlook suggests investors anticipate Bitcoin price to surge in the next few sessions.

Bitcoin price: BTC/USD

Likely to support the bulls is a hidden bullish divergence suggested by the Relative Strength Index. The Stochastic RSI is also trending deeply oversold to suggest the upward path is the more likely immediate route.

Bitcoin price has shown promises above $47,000, printing consecutive green candles above the ascending trend line support. The upside has seen buyers retest resistance around $47,500, a level marked by the 20-day EMA on the 4-hour chart.

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BTC/USD 4-hour price chart. Source: TradingView

If bulls push higher to the horizontal resistance line of the old ascending triangle pattern, a bullish breakout could be on the cards. Here, upward momentum beyond $48,000 could catapult BTC price towards the coveted $50k level. Breaching this psychological hurdle will allow BTC/USD to aim at highs of $54,000, probably within the week.

In the scenario that bears mount a stiffer challenge, a pullback to $46,000 and then $45,500 will be likely. Bulls could use this level to reload and keep bears off, with the likely outlook being a consolidation phase that sees BTC/USD trade sideways for a short while.

A rebound above the upward parallel channel could give buyers a chance to retest recent highs. On the flip side, a breakdown from here would highlight a short term decline to support zones at $44,500 and $43,200.

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