Bitcoin price on the BTCUSD pair inched closer to the $50,000 mark after JP Morgan Chase bank announced it would soon allow cryptocurrency services for its customers. This was coming a few days after some major banks indicated they would offer support for Bitcoin and other cryptocurrencies on their platforms.
However, BTCUSD failed to achieve the 50k target after JP Morgan Chase co-President Daniel Pinto said that the demand needed for such services on its platforms was not there yet. He however did confirm in a CNBC interview that despite the lack of sufficient demand, the bank would get involved at some point.
Why is the Market Interested?
A few years ago, CEO Jamie Damon had likened Bitcoin to “tulip bulbs” and had famously predicted that “it won’t end well”. It looks like the CEO has eaten his words and probably done a complete volte-face.
Technical Levels to Watch
50,000 remains the price level to watch for the bulls. Today’s price action topped at 49714.66 for a 4.13% gain. However, price continues to form higher lows and higher highs, which preserves the uptrend. It is therefore a matter of time before BTCUSD tops 50,000. A brief pullback to the 13 February low at 46087.37 may be the catalyst for the price to make a push for the 50,000 psychological resistance. If this level is broken, we can expect the price to make a break for the 53532.53 price mark (100% Fibonacci extension from the 11 December 2020 trough to the 8 January peak.
On the flip side, we have a rising wedge forming on the daily chart. 50,000 is quite a significant resistance from a psychological standpoint. A rejection at that area which precipitates a breakdown of the wedge could lead to a huge selloff. This would target a steep drop towards 30208.07, with this move needing to take out several support targets (44138.76. 41237.02 and 40981.89). Lining up as well to serve as additional downside targets include 38162.46 and 30208.07.
BTCUSD Daily Chart