Market
picture
Bitcoin has
added 4.4% in the past 24 hours to $20.2K, with the primary growth momentum
during the NY session. Interestingly, growth did not pick up in early trading
in Asia as it frequently does. On the contrary, there was a trend of cautious profit-taking.
Now on the
daily charts of BTCUSD, there is a bullish picture, which we warned about
earlier. The descending triangle has resolved with a growth
impulse on higher volumes. As a result, the price surpassed and closed the day
above the 50-day moving average and previous local highs at $19.6K.
However,
bulls should be aware that the current situation is more like February 2019,
when the cyclical bottom has been passed. Still, a FOMO rally is not yet on the
horizon, as it was in October 2020, the last time we saw the start of a broad
bullish rally in cryptocurrencies.
News background
Michael van
de Poppe – founder and CEO of Eight – believes bitcoin will rise to $30K as
early as November. BTC’s possible rise is also supported by the asset’s exodus
from centralised exchanges.
According to
audit firm KPMG, 58% of family offices and high-net-worth investors in Hong
Kong and Singapore intend to invest in cryptocurrencies. Despite the interest,
large investors’ investments in crypto assets remain relatively small (less
than 5% of their portfolio).
Bank of
America points to the increasing correlation between gold and bitcoin prices.
The cryptocurrency’s limited issuance creates an environment where demand for
BTC will increase.
Cryptocurrency
supporter Rishi Sunak became prime minister of the UK on Tuesday. In his
previous role as Chancellor of the Exchequer, he is remembered for his
benevolent attitude towards digital assets.
This article was written by FxPro’s Senior Market
Analyst Alex Kuptsikevich.