In the new Bloomberg Crypto Outlook (https://assets.bbhub.io/promo/sites/12/1029441_Crypto-Mar2021Outlook.pdf), senior commodity strategist Mike McGlone says bitcoin (BTC) is increasingly replacing gold in investors’ portfolios. Therefore, the price of the main cryptocurrency may approach $100,000.
Adoption of the third budget aid package in the U.S. will play in favor of bitcoin as a means of savings and protection against inflation, this event is expected in March. Thus, inflation expectations, which are already high, will rise. After all, in his interview for the WSJ on Thursday, March 4, Fed Chief Powell admitted that inflation may accelerate after the removal of the quarantine restrictions.
In terms of the data on the chart, the situation is not so rosy.
The attempt of BTCUSD to hold above the round level of $50K has not been successful yet. On March 4 the coin’s price went down to 47k USD. Moreover, the decrease occurred at the increasing volume (1), which can mean the growing selling pressure, following the deficit of buyers. Probably, 50 thousand seems too high price for investors and they prefer to wait for a more profitable moment.
The bulls can put their hopes on the demand zone (2), which is set from the bar of strong growth on February 8 (3). The support line (4) has also not been broken yet. Consequently, on the daily chart the growth phase is still relevant despite the bearish dynamics on the faster timeframes.