FX.co ★ Technical Analysis of BTC/USD for February 24, 2021

Crypto Industry News:

US electric car giant Tesla saw huge gains on its investment in Bitcoin, reportedly reaching revenues of up to $ 1 billion, according to a new report.

An analyst for Wedbush Securities, a private investment firm in the United States, calculated that Tesla earned "about $ 1 billion" following its $ 1.5 billion investment in Bitcoin. Daniel Ives estimated Tesla's BTC gains in a note to investors on Saturday.

In the face of Bitcoin's parabolic rise to become a $ 1 trillion asset, Ives said:

Tesla is on track to earn more from its Bitcoin investments than it does from selling electric cars throughout 2020.

Ives noted that Tesla's move is likely to affect other public companies. "While the Bitcoin investment is an add-on for Tesla, it was clearly a good investment and therefore a trend where we expect it to be able to impact other public companies in the next 12 to 18 months," he wrote. However, Ives expects only a small fraction of the market to follow the trend due to regulatory uncertainty issues:

"We continue to expect less than 5% of publicly traded companies to follow this path until more regulatory frameworks are placed in the cryptocurrency market, which is clearly starting to gain popularity in 2021."

Tesla officially announced its $ 1.5 billion investment in BTC as part of its filing with the US Securities and Exchange Commission on February 8. It is still unclear how many Bitcoins Tesla bought and at what price, as the company did not disclose this information in the notification.

Technical Market Outlook:

The BTC/USD pair has retrace 38% of the last wave down and is currently trading at the level of $50,028. There is a set of Pin Bar candlesticks at the recent sell-off bottom at the level of $44,936, so it is clear, that bulls are protecting the levels under $40k. Nevertheless, the next big resistance for Bitcoin is still seen at $50,000 and it must be violated to continue the bounce towards the level of $51,599 and $53,171. Please notice, that despite the bounce, the momentum is still weak and negative, so the bears are in control of the market for some time now.

Weekly Pivot Points:

WR3 - $75,571

WR2 - $67,184

WR1 - $63,246

Weekly Pivot - $54,169

WS1 - $50,671

WS2 - $42,010

WS3 - $37,979

Trading Recommendations:

The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $60,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $41,125 is clearly broken.