Bitcoin BTCUSD
The Bitcoin price is holding steady after rallying by more than 100% in the first quarter of the year. The BTC is trading at $59,000, which is just $3,000 below its all-time high. Its market cap is still more than $1 trillion.
BTC Q1 review: The Bitcoin price had a strong first quarter as its price doubled. This was a better performance than the overall stock market and other assets. For example, gold price has dropped by more than 10% this year alone.
There were several catalyst for the performance of BTC price. First, more large companies like Square, Tesla, and Mass Mutual decided to move into the industry. In total, these companies bought assets worth billions of dollars.
Second, the fear of missing out (FOMO) saw many investors bringing their resources to Bitcoin and other cryptocurrencies. Third, the large stimulus packages by the American government helped bring more enthusiasm to the industry.
However, as the quarter ended, several challenges emerged. The most notable was the continuing rally of US bond yields that pushed the US dollar to the highest level in months. This led many investors to dump BTC and other cryptocurrencies.
Bitcoin Q2 preview: In the second quarter, analysts will be watching at the US bond yields for clues. They will also be looking at the upcoming company disclosures to see whether more firms moved to buy the digital currency in the quarter. Also, the market will watch the performance of the US dollar.
Turning to the daily chart, we see that the overall Bitcoin price trend has been positive. We also see that the price is being supported by the rising black trendline and the short and longer-term moving averages. Therefore, in my view, it is just a matter of time before the BTC price moves and retests its all-time high.
Also, I predict that the BTC will soar to $75,000 in the second quarter. Using the Fibonacci extension, we see that this price is along the 23.6% retracement level. On the flip side, a drop below $50,000 will send a signal that there are still more sellers in the market.
