By Samuel Indyk
Investing.com – Bitcoin traded above $45,000 for the first time since 5th January on Tuesday as cryptocurrencies continued to rebound after breaking above key resistance levels on Friday.
Bitcoin has risen over 20% from the low print on Friday and is up around 37% from the cycle low that was reached on 24th January.
The catalyst for the upside was a break of the downward trendline that had been acting as resistance throughout January and early February. Bitcoin broke above that level on Friday and the upside momentum carried the apex cryptocurrency above $40,000 before today’s break above $45,000.
Bitcoin News
One of the big stories in the world of cryptocurrencies on Tuesday is news that KPMG in Canada had added both Bitcoin and Ethereum to its corporate balance sheet.
The ‘big 4’ accounting firm didn’t disclose exactly how much of either cryptocurrency they had acquired but said this was part of their commitment to emerging technologies and asset classes.
The news that one of the largest accounting firms in the world was adding cryptocurrencies to its balance sheet will further strengthen the argument that institutional adoption of digital assets is set to accelerate in the coming year.
However, the policy does not come without risks. This quarter alone, both MicroStrategy (NASDAQ:MSTR) and Tesla (NASDAQ:TSLA) have taken impairment charges on their cryptocurrency holdings.
MicroStrategy announced it had taken an impairment charge of almost $150 million in Q4 due to the decline in price of Bitcoin versus the price at which it was acquired.
Looking ahead
Looking forward, a clean break above $45,000 for Bitcoin would open the door to a test of the psychological $50,000 level.
On the downside, the 50-day moving average could act as first support at $42,764.
Short term support is also seen at the $42,000-$42,500 zone, before the key $40,000 threshold.