Analytics / Forex and Crypto News
In the long term, the bullish trend may continue until the BTC/USD pair reaches $60000- $64000. For this forecast to be confirmed, the BTC/USD pair must remain above the $42000 level. A price drop below the $42000 level will signal the beginning of a bearish trend.
This prediction came after an intraday correction in Bitcoin ahead of the opening of trading in New York on Wednesday. Bitcoin price has dropped more than 1,5% after hitting a new all-time high of $48216. Recall that the catalyst for the price increase was the news that Tesla purchased a cryptocurrency worth $1.,5 billion.
At the time of publication, the BTC/USD pair is trading around $44700. The price began a correction as investors began to fix their profits.
After the news about Tesla's purchase of Bitcoins, analysts' opinions were divided. Some analysts say Wall Street companies will follow Tesla's example and start buying Bitcoins as well. Other analysts say Bitcoin remains too volatile. Corporations invest their cash in high quality short-term fixed-income securities and are willing to accept relatively low rates of return.
As corporations accept Bitcoin as a treasury reserve asset on their balance sheets, they replace the idle asset with the most efficient asset, preferring a volatile appreciation of the stable depreciation rate.