While the overall trend is bullish, a retest of the pivot point at about 45,300 cannot be ruled out.
Sell the BTC/USD and add a take-profit at 46,000.Add a stop-loss at 50,000.Timeline: 1-2 days.
Set a buy-stop at 48,000 and a take-profit at 50,000.Add a stop-loss at 46,000.
The strong BTC/USD rally appeared to fizzle out even after the latest developments by MicroStrategy. Bitcoin has remained slightly below $48,000 in the past few days. Still, the coin is substantially higher than its year-to-date low of about $30,000.
MicroStrategy to Buy More Bitcoin
MicroStrategy, the company founded by Michael Saylor, has become one of the biggest companies in the blockchain industry. It started accumulating Bitcoin in 2021 and currently holds thousands of them.
On Tuesday, the firm said that it will take another $205 million loan to buy additional coins. This will bring its total coins to over 128,687. At the current price, its Bitcoin holdings will be worth over $6 billion.
This is notable considering that its total market cap is about $5.75 billion. This means that investors are valuing MicroStrategy as a purely Bitcoin company despite the fact that it makes money from its software firm as well.
The BTC/USD rally faded after the latest hack in the DeFi industry. In the biggest exploits in the DeFi industry, hackers managed to steal over $625 million in US dollars and ETH from Ronin Network. The hack affected nodes pointing to Sky Mavis, the operator of Axie Infinity, the popular game.
Meanwhile, popular cryptocurrency investors like Michael Novogratz expressed optimism that the current bounce will last. He expects that the coin will at least retest its all-time high this year.
Another major event came from Terrraform Labs, the creators of the popular coin known as LUNA. In a statement, the developers said that they will buy and hold $10 billion worth of Bitcoin to back its stablecoins. Terra is widely known for its Terra USD stablecoin, which is the fourth biggest in its industry.
The BTC/USD rally has faded in the past two days as it has struggled to remain above the 48,000 resistance level. On the four-hour chart, the pair remains above the important resistance level at 45,760, which was the highest point on February 10th. The bullish trend is also being supported by the 25-day moving average.
Further, the price is slightly below the first resistance of the standard pivot point. Therefore, while the overall trend is bullish, a retest of the pivot point at about 45,300 cannot be ruled out. This will be as part of a break and retest pattern.