Bitcoin Price Forecast: Cryptos Surge Alongside Coinbase's Nasdaq Debut

(MENAFN- DailyFX) Bitcoin (BTC/USD) Price Outlook:

• Bitcoin surged to nearly $65,000 as the largest cryptocurrency by market cap waded into record territory
• Gains were observed across the crypto world as a leading cryptocurrency exchange, Coinbase, debuted on the Nasdaq
• Bitcoin vs Gold: Top Differences Traders Should Know

Bitcoin came within striking distance of $65,000 Wednesday as a broad-based cryptocurrency rally took off alongside the Coinbase initial public offering. Wednesday's gains have seen Bitcoin climb more than 105% in the year-to-date as widespread corporate adoption has helped drive persistent demand for the digital asset. Coinbase shares, which are perhaps the most straightforward display of public perception regarding cryptocurrencies outside of the coins themselves, opened considerably higher than their initial list price of $250 at $381.

Chart created in TradingView

As shares quickly surged to an intraday high of $429, Coinbase (COIN) briefly enjoyed a market capitalization north of $110 billion making it one of the largest 80 companies in the world. Companies with similar valuations include Lockheed Martin, Union Pacific and IBM. Going forward, traders looking to trade or invest in Coinbase shares should track sensitivities in share price relative to the price of Bitcoin. Already, companies that have boasted exposure to Bitcoin through their balance sheets, like Tesla and Microstrategy, have shown some degree of correlation to the BTC/USD spot price.

Regardless of potential sensitivities, the breakout in Bitcoin, Ethereum , XRP and other cryptocurrencies alongside a stellar direct listing from Coinbase suggest cryptocurrency continues to gain mainstream popularity which may continue to drive price gains.

To that end, bulls should eye the rising trendline from the coin's January high as it looks to provide a modicum of support in the shorter-term should selling arise. Subsequent support may be derived from the trendline originating off the January lows which has helped guide Bitcoin higher since the line's inception. A break beneath the January uptrend could open the door to steeper losses and call the broader rally into question.

As it stands, however, Bitcoin looks poised to continue its remarkable rally and topside resistance is relatively sparse. $65,000 may serve as an early barrier to further gains as a round psychological level, but the more formidable hurdle in my view is the ascending trendline derived from the coin's February and March highs.

Either way, recent gains have see Bitcoin extend its series of higher highs and higher lows which, when combined with new all-time highs, culminate in a very encouraging technical backdrop. In the meantime, keep up to date on recent price developments and analysis using Twitter by following @PeterHanksFX.

--Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

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