Bitcoin (BTC) price in the last week of January 2021

Bitcoin price has been a major topic of discussion over the past few months. It saw major surges and harsh crashes, but in the end — it provided countless opportunities for investors and traders to make a profit. As always, traders are always looking for more information about the coin’s price, and its weekly performance can reveal a lot.

Fundamental analysis: Great news for Bitcoin

The last week of January was nothing special for Bitcoin, for the most part. The last few days, however, were. One of the biggest news regarding the coin was the fact that Elon Musk announced that he is now an official Bitcoin supporter.

Musk is known for his occasional mentions of cryptocurrency on Twitter. However, this time, he did more than just mention the coin — he put “Bitcoin” in his Twitter bio. Furthermore, while making an appearance at Clubhouse, he openly stated that he might be late for the party, but he is now officially a BTC supporter.

This is huge news for Bitcoin — not only is Elon Musk, the CEO of Tesla and SpaceX, the richest man in the world, but he is also the most popular multi-billionaire out there. As such, declaring his support for BTC is a major step for the coin, and the crypto industry as a whole.

Another major news for crypto is that Visa might add support for crypto trading, according to its CEO’s recent statement. Alfred Kelly said that Visa has a global presence, and it is a trusted brand. With crypto becoming more and more used in payments, it is only natural that Visa would take this opportunity. And, of course, if this happens, Bitcoin is likely one of the first coins to be supported.

It is still not known what will happen to Bitcoin in terms of regulations under the Biden administration, but Fidelity seems to be optimistic about the situation. There is strong institutional demand that will likely force the regulators to bring the necessary laws, or risk an even greater disruption of traditional finance.

Technical analysis: Bitcoin surges in a Friday rally

From a technical point of view, the past week has been rather calm for Bitcoin, according to CEX.IO data. The coin mostly fluctuated between $30.500 and $34,000.

While these two levels held BTC locked and prevented it from going above or below for long, the resistance cracked on Friday, right around the time when Elon Musk put Bitcoin in his Twitter bio.

The coin might have also seen a surge due to the Wall Street Bets’ GameStop short squeeze, during which Redditors mass-invested to pump the prices of companies that institutional investors were shorting. The story exploded and received major attention, which was used by some to pump Dogecoin’s price, and possible Bitcoin’s, in extent.

The coin skyrocketed to $38,600, only to crash down to $32,850 during the same day. In the end, Bitcoin’s surge may not have lasted for long, but those who saw it happen live have likely been able to profit quite well from this opportunity.

What awaits Bitcoin in the rest of the year?

While BTC does currently seem to be in a hibernation period, we believe that this is only temporary. The institutional demand is massive, and it will not just go away. With that in mind, we expect BTC to resume the price rally at some point in Q1, and complete the quarter with the price of $50,000 per coin.

Furthermore, in our opinion the surge to continue past this point, and potentially also reach $80,000 by the end of the second quarter. The third quarter might see corrections or another time of relative stability, but the final quarter of this year will likely see another growth — this time to $90,000, based on the coin’s stock-to-flow ratio, and all the positive development that was seen in recent months.

The post Bitcoin (BTC) price in the last week of January 2021 appeared first on Invezz.