Bitcoin traded above $ 45,000 this afternoon before starting to make a price correction to $ 43,851.22. This is the first time the Bitcoin price has surpassed that level since January 5 when the cryptocurrency continued to recover after breaking the key resistance level on Friday.
The price of Bitcoin has risen more than 20% from last Friday’s lows and is up around 37% from the cycle lows reached on January 24th. The catalyst for the price increase was Bitcoin successfully breaking the downtrend that had acted as resistance throughout January and early February.
The $ 40,000 price level which was the main resistance was successfully broken on Friday and started to record upward momentum bringing the price of Bitcoin soaring above $ 40,000 before today’s breakout exceeded $ 45,000.
Also a catalyst was the news that KPMG in Canada has added Bitcoin and Ethereum to its corporate balance sheet. The ‘Big 4’ accounting firm did not disclose exactly how much crypto was added.
The news that one of the world’s largest accounting firms has added cryptocurrency to its balance sheet will further strengthen the argument that the use of digital assets in institutions will accelerate in the coming year. However, there are risks to be borne. In the last quarter alone, both MicroStrategy (NASDAQ: MSTR) and Tesla (NASDAQ: TSLA) have suffered losses following their cryptocurrency holdings.
MicroStrategy announced that the company had a loss of nearly $ 150 million in Q4 due to the decline in the price of Bitcoin relative to the price at which it was acquired.
For early indications, market players are now paying attention to the $ 45,000 level. The market hopes bitcoin manages to stay above this price level to re -test the $ 50,000 resistance level. On the other hand, the 50 -day moving average could act as the first support at $ 42,764. Short-term support is also seen at the $ 42,000- $ 42,500 level, before the $ 40,000 level.
