Bitcoin (BTC) price has started trading sideways on low volatility just a day after Tesla’s $1.5 billion investment announcement. The cryptocurrency has left price discovery mode after posting an all-time high of $48,216
Bitcoin fundamentals and past price performance
The largest cryptocurrency by market cap is consolidating, after posting a new all-time high of $48,216. While the volume is still quite high, BTC bulls have faced a major sell wall that they couldn’t pass. Bitcoin will likely need an influx of buyers in order to continue its push past $50,000.
Bitcoin’s overall outlook is extremely bullish, all due to the institutional interest it received lately, managing to post weekly gains of 27.54%, outpacing ETH’s 16.65% gain.
At the time of writing, BTC is trading for $46,375, which represents a price increase of 30.89% when compared to the previous month’s value. The largest cryptocurrency by market cap boasts a value of $866.06 billion, making up 61.4% of the total crypto sector market cap.
BTC/USD daily chart price analysis
Bitcoin was slowly moving up throughout the week on strong fundamentals and decent demand. However, its price skyrocketed on the Tesla $1.5 billion investment announcement. On top of that, one bank came out and recommended that Apple puts $5 billion into BTC.
This is when BTC broke out of its regular pattern of following the 21-day EMA and pushed up, breaking many levels along the way. Bitcoin is currently consolidating, but with the decreasing volume and yesterday’s Doji candle (a trend change pattern), we may see a slight price reversal.
If the cryptocurrency retraces, there are several small levels to look at, such as the area around $46,820, the area around $44,300, etc. However, its first strong support level lies at the $39,320 mark.
BTC/USD daily price chart. Source: TradingView
BTC’s RSI on the daily timeframe has flattened, but is still in the overbought area, with its current value sitting at 74.75.
Analyst Keith Wareing said of Bitcoin that: “Right now, $48,000 is acting as resistance in this channel for Bitcoin. This is the zone to break past for the next big leg up, and each day $100,000 Bitcoin seems more and more inevitable.”
BTC/USD hourly chart price analysis
With the immense volume that came with Tesla’s $1.5 billion investment announcement slowly fading, Bitcoin has started trading in a much more stable and less volatile fashion.
BTC/USD 1-hour chart. Source: TradingView
While it is true that Bitcoin’s current demand far outstrips the supply, Bitcoin won’t pass the $50,000 mark easily. The cryptocurrency will surely need another volume spike that can take its price above the historic $50k level, and traders should be on the lookout for a catalyst.