Now, there is a debate over whether other companies follow suit and add to the positive momentum in the market
Bitcoin prices rose to fresh all-time highs above the $48,000 figure on Tuesday. The leading cryptocurrency by market capitalization faced resistance around $42,200 and proceeded to a retreat in today’s trading as the bulls opted to take a pause after another strong rally seen over the last couple of days. Despite the current correction, BTCUSD remains within a broader uptrend, and it looks like the digital asset could set fresh records following some consolidation with a bearish bias.
Bitcoin’s rally is still driven by Tesla’s $1.5 billion investment in the world’s largest cryptocurrency. Now, there is a debate over whether other companies follow suit and add to the positive momentum in the market. If corporations start adding bitcoin to their balance sheets, its fundamentals would improve further while pushing the prices higher further despite the overbought conditions.
Institutional adoption will continue to add to the bullish momentum in the cryptocurrency market in the longer term as this asset class, especially bitcoin, is now being considered as a safe-haven against inflation and volatility in traditional global markets amid the pandemic-related uncertainty.
From the technical point of view, the BTCUSD could target the $50,000 psychological level next. It is possible that this barrier would scare some buyers and trigger massive profit-taking within the uptrend. However, the least path of resistance for bitcoin is still to the upside, and it’s not too late to invest in digital assets despite the already high prices.
In the short term, the coin could threaten the $45,000 area that will likely act as support if the local pressure is limited. In this scenario, the pair could regain the $48,000 figure eventually, to set fresh all-time highs in the coming days. Of note, bitcoin has already erased nearly all intraday losses by the time of writing and was changing hands above $47,000.