After closing the week of in a stable manner, the bulls have awoken this Monday. Traded at just above 6300 USD in the morning of July 16th, 10:00 AM brought about some heavy green action which saw the coin regain around 200 USD worth of value. Currently, BTC is traded at 6618 USD per single coin and is showing extremely bullish short term signs. The market cap is set at 113,340,288,710 USD and the coin holds firmly as the most valuable cryptocurrency in the world.
Technical analysts have foreseen similar movements happening, as more than one noticed inverse head and shoulders patterns forming on the Bitcoin graph. RSI and MACD have also been looking good throughout the week. @HsakaTrades at twitter notes that Bitcoin Volatility Index is at an all-time low:
“Bitcoin Volatility is touching it’s historical support level. Previously there’s always been a substantial move whenever it got around here. Currently, it’s the lowest ever since 20k. Big move incoming.”
More importantly, a significant boost in volume can be noticed, as total Bitcoin daily volume currently stands at 4,828,890,000 USD (per coinmarketcap’s data). Binance alone will be responsible for a lot of that, as it housed 197 million USDT worth of BTC trades in the last 24 hours.
EMA-50 on the daily chart rested right around 6800, so this is seen as the next target that Bitcoin will be shooting for. @tradingroomapp posted a list of strong resistances that Bitcoin bulls are currently facing:
Looking at the past price movements, Bitcoin bounced off 6800 several times in the last couple of months, both upwards and downwards. All of these indicators imply that a rally towards 6800 is on the cards. For now, the magical number is 6800, and if Bitcoin manages to break over this barrier (backed by unchanged, if not improved volume) we should expect it to challenge 7000 USD. On the other hand, there is a possibility that 6800 won’t be reached; in that case we could see a drop towards 6200 USD.
The bullish momentum might be initiated/supported by the latest announcement that Blackrock, American investment corporation that is currently managing around 6.3 billion USD in assets, is considering ways to enter the cryptocurrency markets.
Their earlier quotes suggest that they haven’t been exactly supportive of Bitcoin and crypto from the start. BlackRock’s global chief investment strategist Richard Turnill implied that the markets are too dangerous and prone to losses back in February; earlier on in October he went as far as saying that cryptocurrencies show many characteristics of a bubble. The same sentiment was expressed by the BlackRock CEO Larry Fink who stated:
“Bitcoin just shows you how much demand for money laundering there is in the world.”
However, their tune is changing and Blackrock’s investment into the space would mean two things: Bitcoin ETF and a rise of market liquidity thanks to an influx of institutional money. BlackRock news come merely days after the Chicago Board Options Exchange (CBOE) filed a proposed rule change to list and trade shares of Van Eyck Investment and SolidX’s Bitcoin ETF known as “Bitcoin Trust”.
Whether or not these two updates materialize, it certainly looks like institutional money is starting to take serious, public interest in Bitcoin. This will surely be a welcome injection of hopium for the market and a reinforcement of the belief that we almost reached the bottom of the great bear trend of 2018.
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