The 2.19 Bitcoin and Ethereum bull market continues. How much are you going to make this year?

The reason Bitcoin is rocketing

"There are many reasons Bitcoin is surging, but the most prominent one is the trend that MicroStrategy (Note: a registered business intelligence company, holding large amounts of Bitcoin) was started and popularized by Tesla: Transfer of institutional balance sheets to Bitcoin To hedge inflation."

Large institutions and companies are increasingly involved in Bitcoin transactions. Famous Wall Street billionaires like Paul Tudor Jones and Druckenmiller (Stanley Druckenmiller) as well as other investors publicly support and buy Bitcoin. Software maker MicroStrategy invested more than $ 1 billion last year, exceeding the company's market value when the purchase was announced.For one-third of the total, Tesla holds more than $ 1.5 billion in Bitcoin, and major financial firms such as PayPal and Fidelity are also taking action. in Bitcoin. Their support has brought confidence to skeptical mainstream investors.

At the same time, central banks around the world have relaxed monetary policy, such as lowering interest rates and buying assets through quantitative easing programs, to help recover economies affected by the epidemic. "Trillions of dollars are printed and injected into the economy. From individuals to financial institutions and companies, everyone is running around the world looking for the best way to protect their purchasing power. Their final decision is Bitcoin."

Bitcoin futures activity shows that traders do not believe that the cryptocurrency rally will end suddenly, and that the spread between the active contract and the March futures contract continues to widen.

The skyrocketing prices have also eased the tone of some companies distrusting cryptocurrencies. In 2017, when Bitcoin was trading below $ 4,600, JP Morgan CEO Jamie Dimon stated that he would fire anyone "stupid" for trading cryptocurrencies. But in February 2021, vice president Daniel Pinto said that if customer demand becomes strong enough, banks will trade Bitcoin.

Among the risks behind bitcoin, the biggest problem is the volatility of the bitcoin price. According to a Bloomberg report, currently, Bitcoin volatility is almost 5 times that of the S&P 500 in the last 20 trading days. Panigir Zoglo also stated that Bitcoin is "five times more volatile than gold." If Bitcoin's volatility meets gold, the key is for institutions to adopt this cryptocurrency.

The biggest risk is that the increase in traffic we have seen in recent months will start to slow down, said Panigirzoglo. “Especially when the economy reopens and people come back to the office and they trade at home. It takes less time, and as a result ... the traffic (transactions) starts to slow down. "

Bitcoin jumped to 50,000 is expected, as I said a year ago, 50,000 Bitcoin is definitely no problem. Recently, under the blessing of various news on the market, Bitcoin has also broken new highs. We've also explained the reasons for this spinning Bitcoin spike from a macro perspective above, so there are still rules at work, take advantage of the trend, and do more with less. Don't think about copying the top, you still can't see the top.

Technically, we can see from the 4 hours chart that the current bulls at 52600 are temporarily suspended, and the up-down conversion from 50000-50500 forms up-down conversion support. Of course, the strong support is still at the 48,000 lines. In today's operation, it is still a major step backward some orders.

Ethereum trend is my favorite trend, every step is very solid, there is no risk of major accidents. Nearing the current highs in 1950, this trend should be heading for $ 2,000, but it won't happen overnight. However, both from the heart of the investment and the technical form of $ 2,000 will create strong pressure. On the 4-hour chart, it is basically going up continuously, and the power to reverse is very limited, so we can actually be more aggressive in operations. For one-day operation, see 1870-1880 top-down conversion support for multiple order layouts. Of course, you need to do a short order when it touches 2,000 US dollars. This must be done. The essence of investing is getting a small return. Shorting close to 2,000 US dollars means a small stop loss and a large profit.

Special operation advice:

1. Bitcoin 50000-50500 more orders, target 52000-52500, stop loss 49000. If there is a deep correction which causes an order to stop losses, continue to enter the market near 48000, the target remains unchanged, and stop loss is placed at 47000.

2. Ethereum long order 1870-1880, target 1950-2000, stop loss 50 points. Likewise if there is a deep correction which causes stop loss orders, then continues to enter the market near 1750 and continues to enter long orders, the target remains the same, 1700 to increase the position, stop loss can be placed at 1650.

Article pending. Market analysis and operating advice are for reference only. Markets change rapidly and require real-time analysis and follow-up. Operation suggestions are for reference only. Everything is subject to actual warehouse calls, at personal risk!