Is it time to take some profits as Bitcoin soars toward $50,000?

The saga between Elon Musk and Bitcoin seems set to last. On February 8, Tesla announced that it had invested 1.5 billion dollars in Bitcoin. Result: a new strong uptrend. 20% on Monday alone, +30% in one week. Bitcoin is now trading around €38,400 ($46,500) on February 10. The $50,000 mark for a Bitcoin has never seemed so close.

But should this psychological level be seen as an opportunity to take some profits? This is a delicate question. It all depends on one’s exposure to Bitcoin and the average acquisition price. Materializing a little profit has never been a losing strategy. However, there are no short-term warning signals about a possible price reversal. One wonders whether some companies or investment professionals might not be considering Bitcoin as a store of value against the possible return of inflation. Indeed, long rates are beginning to increase in the United States, prices of some commodities such as oil are on the rise, and the financial markets are expecting a return to business as usual as a result of the vaccine campaigns.

In any case, the entire crypto market is benefiting from this euphoria. New individual investors are coming in. Ethereum has also reached a historic high of almost €1,500 ($1,800). Projects such as Polkadot (DOT), Cardano (ADA) or Uniswap (UNI) and Aave for decentralized finance are also in a strong uptrend. But beware, even projects without fundamentals like Dogecoin are bullish at the moment. Informed investors will have to take partial profits in strategic price zones because no trend lasts forever.

• According to CoinGecko, market capitalization is still growing and exceeds 1,400 billion against 1,100 billion last week.

• Bitcoin’s dominance remains stable at 61.4% market share.

• The best performance of the top 50 is to be attributed to Avalanche (AVAX) with +218% over one week.

We invite you to discover our analysis in video (in french and dated February 9) :

Bitcoin (BTC)

The Coinhouse recommendation :
Hold

• The trend remains strongly bullish on Bitcoin which is trading at €38,400 ($46,500), up 30% in one week. The $50,000 zone will act as a psychological threshold and we will be watching the price’s reactions to its contact. We will not take profits unless we see clear signals of reversals. The technical anlayse gives us a zone between €43,700 and €48,600 ($53,000 and $59,000) for a possible end of trend. In case a marked correction is triggered, the zone between €24,000 and €27,000 ($29,100 and $32,800) will be interesting to buy back.

Ethereum (ETH)

The Coinhouse recommendation :
Partial profit-taking

• Ethereum (ETH) is also bullish in the wake of Bitcoin and appreciates by 18% to €1,480 ($1,800). Following the buy signal on the $1430 breakout, the price is now in a partial profit-taking zone: between €1,420 and €1,580 ($1,710 and $1,900). Of course, if we observe a strong acceleration and a break of the symbolic $2000 threshold, we will buy back Ethereum. If the correction takes place, the redemption zone is between €860 and 990 ($1040 and 1200).

Polkadot (DOT)

The Coinhouse recommendation :
Hold

• Since December 2020 Polkadot (DOT) has been in an uptrend and this week is still gaining 38% at €19.77 ($24.80). Technical analysis shows a bullish chartist channel. As long as the price does not break this channel from the bottom, there are no pronounced reversal alerts. We monitor the area between $27 and $29.80 which corresponds to a Fibonacci extension zone and the top of the chartist channel. It will be favorable to take partial profits.

Tops & flops of the week (top 50 marketcap)

Tops

1- Avalanche (AVAX) : +216%
2- Terra (LUNA): +188%
3- Elrond (EGLD): +171%

Flops

1- LEO Token (LEO) : +2%
2- Uniswap (UNI): +9%
3- Monero (XMR) : +16%

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