Break the history! Bitcoin surges above $47,000! (With Trading Strategy)

Bitcoin’s price jumped sharply to an all-time high after Tesla revealed a big stake in the cryptocurrency and said it would start accepting payments in the digital coin for its products.

Bitcoin added as much as 2.5% to hit a record high of $47,565.86 on Tuesday and has gained 61% for the year so far. Ethereum hit a record of $1,784.

Bitcoin rose 3.69% to $46431.0 by 11:50(GMT+8) on Tuesday.

In a filing with the Securities and Exchange Commission, Tesla announced Monday that it bought $1.5 billion worth of bitcoin for “more flexibility to further diversify and maximize returns on our cash.” It also said it may invest a future portion of its assets in digital assets and that it will accept bitcoin as payment for products “subject to applicable laws and initially on a limited basis.”

The move makes Tesla the first major automaker to accept bitcoin as payment.

Tesla’s stake in bitcoin “will have a ripple effect across corporations around the global,” Wedbush analyst Dan Ives said in a note. It is a “potential game-changing move for the use of bitcoin from a transactional perspective.”

CEO Elon Musk has been talking up bitcoin as well as meme-inspired token dogecoin in recent tweets, which many believe drove the recent runup in these assets.

Tesla’s investment in bitcoin is the latest sign that the volatile cryptocurrency is being widely embraced. Last year, Fidelity Investments, Square and PayPal announced big moves in the space, allowing their customers to be involved in the digital asset.

Interest from high-profile investors such as Paul Tudor Jones and Stanley Druckenmiller also boosted the token. Many even believe bitcoin has the potential to replace safe-haven gold by some institutional investors.

“TSLA hasn’t historically been a company to shy away from publicity, so some will write off today’s announcement as a marketing stunt, but at $1.5 billion, it would be a pretty big stunt,” Bespoke Investment Group said in a note. “Also, while it’s easy to forget, TSLA is one of the largest companies in the world.”

Apple Inc has a “clear opportunity” to offer a buying and selling mechanism for cryptocurrencies, a move that would allow the company to immediately gain market share, according to a research report on Monday from RBC Capital Markets.

With its access to world-class software and a secure ecosystem, Apple could tackle the problem individuals face acquiring crypto assets due to know-your-customer laws and other regulations with the company offering a closed system that prevents nefarious activity, improves asset security, and has instant access to buyers and sellers, the report said.

It added that if Apple, which already has a Wallet app, went down this path, the move would likely make the United States a global leader in crypto assets, lessening the possibility of a government shutdown of the industry.

“If the USA owns the most crypto assets (be it Bitcoin or other assets), it would not make logical sense in our view to ban it,” RBC analysts said in the report.

The report came the same day that top cryptocurrency bitcoin strode closer to mainstream acceptance after billionaire Elon Musk’s electric vehicle company, Tesla Inc, revealed it had bought $1.5 billion of bitcoin and would soon accept it as a form of payment for cars - sending the cryptocurrency shooting higher.

Apple has proceeded cautiously with cryptocurrencies. The company banned cryptocurrency wallets from its App Store in 2014, but later reversed the decision and now allows them. However, Apple bans mining for cryptocurrencies on iPhones and does not allow its Apple Card credit card to be used to purchase cryptocurrencies.

Trading Strategy (source: Trading Central)

Our pivot point stands at 41989.

Our preference: the upside prevails as long as 41989 is support.

Alternative scenario: below 41989, expect 40687 and 39912.

Comment: the RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 41581 and 39780).

Supports and resistances:

47173 **

46393 *

45613 **

44834

43207 last

42500

41989 **

Guideline for Trading Central strategy 

Trend chart reading guideline

1. First look at the time period in the upper left corner of the chart: ·30MIN and 1H chart shows the trading suggestions for intraday ·Daily chart shows the market trend analysis in next 2-3 days

2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.

3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators: Blue line is RSI, Red line is 9MA;

4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.

How to use TC strategy？

1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell. 

2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.

3. [Alternative scenario] is the plan B for your reference. 

4. [Comment] is the technical analysis of market trends and technical support for trading strategies. 

5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.

Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.