Warning: Bitcoin Is About To Break the Next Psychological Barrier at $50K

Be ready for Bitcoin entering into a new dimension (again).

Gradually, Then Suddenly.

You've probably heard Bitcoiners say this before. As I wrote recently, Bitcoin has entered its Suddenly phase now. Everything is accelerating at an incredible speed now for the king of digital currencies.

Every week that passes is full of important announcements that only reinforce the growing acceptance of what Bitcoin is today: the best store of value available to the greatest number.

Earlier this week, Tesla announced a $1.5 billion purchase of BTC which represents 10% of its cash reserves. One of the world's most valued companies has decided to opt for Bitcoin. Elon Musk's tweets about Bitcoin were a sign that he was becoming a Bitcoiner. But Elon Musk still had to take action. He has done so.

Tesla's entry into the Bitcoin world allowed Bitcoin price to increase by 20% in just a few hours. Bitcoin's volatility is a feature, not a bug. Those who fundamentally believe in the Bitcoin revolution are always rewarded. Now the price of Bitcoin is looking at a major new psychological barrier: the $50K.

And to think that Bitcoin broke the $20K barrier in December 2020 for the first time… It feels like it was 10 years ago, so many important announcements have been made in the last few weeks. This shows you how things are accelerating in the Bitcoin world.

We're still in the early adopter phase, but we're starting to reach more and more people.

Tesla's entry into the world of Bitcoin is bound to accelerate the digital transformation of corporate balance sheets. Twitter has just announced that it is looking into the possibility of making Bitcoin a reserve asset as well. This movement, which is still in its infancy, will accelerate sharply in the months and years to come. The success of Bitcoin is inevitable.

We must pay tribute to Michael J. Saylor for having had the audacity and intelligence to adopt this strategy since August 2020. Besides, Michael J. Saylor has become a formidable ambassador for Bitcoin. Rather than simply profiting from Bitcoin, Michael J. Saylor has decided to reveal his Bitcoin Playbook to as many people as possible.

At a conference held in early February 2021 by MicroStrategy, Michael J. Saylor has answered the many questions that all the treasuries of major companies are asking themselves right now regarding Bitcoin:

  • Where do you buy Bitcoin?

  • When do you buy Bitcoin?

  • How do you buy Bitcoin?

  • Is Dollar-Cost Averaging (DCA) strategy the best?

  • Is buying all your BTC at once a better option?

  • What are the tax and regulatory implications when you buy BTC with your cash reserve?

  • Where do you custody your BTC?

  • What are the security implications of opting for Bitcoin as your primary treasury reserve asset?

  • How do you incorporate Bitcoin into your accounting practices?

Michael J. Saylor and MicroStrategy were able to answer all of these questions clearly and accurately. De facto, more and more large companies will opt for Bitcoin for their treasury reserve asset in the coming months. Eventually, it is even likely that their shareholders will directly claim this exposure to Bitcoin.

The entry of Tesla has enabled Bitcoin to reach a new ATH of $48.7K. The next big announcement of a large company will allow Bitcoin to surpass $50K. And this will only be the beginning, as the year 2021 promises to be even more phenomenal than that.

The entry of a GAFAM into the world of Bitcoin is only a matter of time in my opinion. Maybe it will be Apple, maybe Microsoft, maybe Amazon. Either way, all these giants are sitting on mountains of cash that keep devaluing because of the weak U.S. dollar. Allocating between 1 and 5% of their cash reserves in Bitcoin is simply common sense.

The Bitcoin revolution continues to move forward block after block. Those who refuse to embrace it will find themselves overwhelmed sooner or later. BNY Mellon, the oldest bank in the United States, understands this. The bank has decided to enter the world of Bitcoin this year. BNY Mellon will offer its customers a service to buy and hold Bitcoin.

If buying Bitcoin through your bank is not a good idea, because you won't be in control of your BTC, it simply shows that Bitcoin continues to grow closer to the general public.

Final Thoughts

At the time of this writing, the Bitcoin price is $47.2K. Tesla's entry has turned the $43.3K - $43.7K area into major support. As long as Bitcoin price remains above this zone, we will remain in this uptrend with $50K as the next psychological barrier to overcome.

If this support were to break, the drop could move to the next major support around $37.8K - $38.5K.

We will see what the price of Bitcoin has in store for us in the coming hours and days. In any case, don't be surprised if the $50K is passed by the end of this week. Once the $50K is gone, Bitcoin will enter a new dimension (again).

At the pace things are going, my prediction of Bitcoin reaching at least $100K by the end of 2021 is becoming conservative. This says a lot about what is currently happening around Bitcoin. If you haven't yet entered this new world of phenomenal potential, you'd better ask yourself the right questions so you don't have eternal regrets in some years.

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