Bullish Tesla news causes major Bitcoin price surge
The price of Bitcoin surged towards the $48,200 level this week after Tesla announced that they had purchased $1.5 billion worth of Bitcoin. Tesla CEO Elon Musk had been teasing the announcement for weeks on social media as he noted that he was a fan of Bitcoin. Bitcoin rallied by over 20 percent on the news and easily broke above its former all-time price high, around the $41,700 level. Tesla also made the surprise announcement that they were making plans for Tesla customers to be able to purchase cars in Bitcoin. The news was seen as a game changer for the number one crypto and caused analysts to raise their price forecasts for Bitcoin.
- The BTCUSD pair is only bearish while trading below the $45,000 level, key support is found at the $43,600 and $41,700 levels.
- If the BTCUSD pair trades above the $45,000 level, buyers may test towards the $50,000 and $52,000 resistance levels.
Dollar selling resumes
Traders and investors continue to sell the US dollar currency as the recent bearish reversal in the greenback quickly gathered momentum. The US dollar currency fell against a broad basket of currencies this week, especially the British pound and the Canadian dollar. Weak inflation data from the United States economy and the promise of more QE and low rates kept the US dollar on the backfoot. A dovish speech from Federal Reserve Chair Jerome Powell and a number of FOMC policy members also reinforced the notion that the US economy remained in a fragile position.
- The S&P 500 is only bullish while trading above the 3,700 level, key resistance is found at the 3,950 and 4,000 levels.
- The S&P 500 is only bearish while trading below the 3,700 level, key support is located at the 3,600 and 3,360 levels.
Metals started to recover higher this week, following the previous weeks heavy sell-off in silver which was largely inspired by the Reddit and GameStop crowd. The price of silver rose above the $27.00 level this week as Wall Street started to calm and the US dollar came under pressure across the board. Gold also started to gain upside traction, in a move which was driven by weakness in the greenback and seasonality. Many analysts noted that the price of gold tends to rise on the Lunar New Year period as many Chinese and Asian citizens give relative gifts in the form of gold.
- The XAGUSD pair is only bearish while trading below the $27.00 level, key support is found at the $26.00 and $25.50 }levels.
- The XAUUSD pair is only bullish while trading above the $27.00 level, buyers may test towards the $28.00 and $30.00 resistance levels.
Altcoins received a major boost higher on the cryptocurrency market this week as the so-called alt season got into full swing. Ethereum rallied to a new all-time above the $1,800 level before staging a notable pullback towards the $1,600 support region. Litecoin also moved to a fresh multi-year trading high this week after breaking above the $185.00 resistance level. Litecoin has recently come back to traders attention after being included in PayPal’s recent crypto offering and is closely linked to the price movements of Bitcoin. Mastercard also made an important announcement this week about offering cryptos on its network.
- LTCUSD is only bearish while trading below the $160.00 level, key support is found at the $145.00 and $130.00 levels.
- LTCUSD is only bullish while trading above the $160.00 level, buyers may test towards the $200.00 and $240.00 resistance levels.