The “Elon Musk” Bitcoin (BTC) candle surged by $8,822, initially pushing BTC to a new all-time high above $46,000
Bitcoin experienced a historic day on February 8, with a dramatic rise of more than $8,800 in 24 hours after Tesla disclosed a $1.5 billion investment in BTC.
In addition, the electric carmaker announced it would soon accept cryptocurrency payments for its vehicles. The news sent Bitcoin into a parabolic move, producing the largest green candle in its history.
As shown in the chart below, BTC/USD jumped $8,822, moving from a low of $38,050 to a high of $46,772.
Daily BTC/USD chart. Source: TradingView
With Tesla joining MicroStrategy as one of the largest institutional Bitcoin holders—together accounting for more than $4.5 billion in combined investment—analysts say this may be just the beginning.
BKCM founder Brian Kelly suggested that other companies could soon follow, adding Bitcoin to their balance sheets. In an interview with Mellissa Lee on CNBC’s Fast Money, he said Tesla might have opened the floodgates for other publicly traded firms to adopt Bitcoin.
“This won’t be the only one. It’s really just the beginning,” he said.
Bitcoin’s price rise is justified
Demand for Bitcoin has increased, particularly among large investors. That trend has led analysts to forecast continued price growth for BTC as more companies seek exposure.
Analytics platform Santiment described the recent rise as “justified” by growing unique address activity. In a post after BTC/USD reached one of its multiple new ATHs, the platform noted:
“Bitcoin continued to surge today, now reaching an ATH of $47,500. This rise is justified given the steady increase visible in the 200-day moving average for active addresses (unique addresses interacting on the $BTC network).”
Bulls appear to want more, suggesting the roller-coaster could continue. At the time of writing, BTC/USD set a new milestone at $48,216, and bulls may soon target $50,000.
BTC price outlook
The move to a new record of $48,216 implies that a further rally could push bulls toward the long-coveted $50,000 level.
Chart analysis shows a bullish bias supporting the advance, with technical indicators on daily and weekly timeframes showing bullish momentum. RSI and MACD indicate bullish divergences across these horizons.
BTC/USD 4-hour chart. Source: TradingView
The short-term picture is also broadly bullish as price remains above an ascending support line. Although the market is overheated, the price is not yet overstretched and bulls are likely to buy dips quickly.
However, Santiment’s data shows BTC flows to exchanges spiked to a 19-day high, signaling potential selling pressure. This corresponded with prices dipping below $48,000 in the last hour. If selling pressure pushes BTC/USD under $46,000, the prior high around $42,000 and the 20-day EMA (around $41,948) could provide strong support.
BTC exchange flow rose significantly. Source: Santiment