Bitcoin’s rally could continue in the short term, analysts and traders said, after the largest cryptocurrency by market cap surged on Wednesday to a new all-time-high price above $51,000.
The latest leg up came after CoinDesk reported that business intelligence firm MicroStrategy upsized a convertible-note offering to $900 million from an originally announced $600 million, with plans to use the proceeds to purchase more bitcoin.
At press time, bitcoin’s price is above 10-hour and 50-hour moving averages on the hourly chart, a bullish signal for market technicians.
“On the hourly time frame, bitcoin has a short-term support in the zone between $50,000 and $50,600 and an immediate resistance at $51,600,” Hunain Naseer, senior editor at OKEx Insights, told CoinDesk.
Ki Young Ju, CEO of South Korea-based cryptocurrency data firm CryptoQuant, said the Coinbase premium, which measures the price difference between Coinbase Pro’s BTC/USD pair and Binance’s BTC/USDT pair, has flipped positive, an indication of institutional inflows.
“Bitcoin has upheld positive short-term momentum since breaking out above January’s high,” Katie Stockton, a technical analyst for Fairlead Strategies, said. “There are no signs of short-term upside exhaustion with the psychologically significant $50,000 level having come and gone.”
Bitcoin’s total market capitalization is now approaching $1 trillion.