The Bitcoin price is on a roll. After weeks of accumulation and doubts of whether prices will overcome the strong $12,000 resistance level, bulls have come through and prices are firm above the $12,500 level that marks Aug 2020 highs.
Behind the strong upthrust are several fundamental factors
Top of the list is the influx of institutions and their purchase of Bitcoin for strategic reasons. It was only a few months ago when Goldman Sachs boldly stated that crypto and specifically Bitcoin, despite the rave from analysts and investors, wasn’t an asset class.
As such, they had reasons to believe that investors shouldn’t pay attention since the coin had no intrinsic value.
Judging from their switch of stance–and the coin being purchased in tons by public companies compliant with SEC laws, their position may not hold water.
Following the path set by MicroStrategy—whose CEO isn’t afraid to support and lay out reasons to double down of the world’s most valuable currency, Mode Banking, a public company that recently crowd-funded through an IPO and listed at the London Stock Exchange (LSE), said it was investing 10 percent of its cash reserves to become a truly digital Fintech company.
This, they explained, was part of a larger strategy to shield their investors from a possible currency debasement while concurrently earning maximum returns from their investments.
Meanwhile, PayPal has officially announced their support for Bitcoin and several cryptocurrencies including ETH and LTC. The U.S. Fintech company said it was preparing their network for government and corporate issued digital currencies and helping in the adoption of cryptocurrencies.
Bitcoin Price Analysis
The Bitcoin price is bullish, adding 13 percent against the greenback in the last week of trading.
Given the current FOMO, it appears that the path of least resistance is northwards in the immediate term. From the daily chart, Bitcoin prices are trading above $12,500, an important resistance level now support as aforementioned.
Still, there are odds of further upticks. Accompanying the Oct 21 blast above $12,000 and $12,500 was an uptick in trading volumes. As such, there is strong upside momentum as candlestick arrangement in the daily chart suggest.
Bullish bars are banding along the upper BB, hinting of momentum. At the same time, the upper and lower BBs are diverging pointing to heightened volatility.
Because the uptrend is firm, every low is technically a buying opportunity with first targets at $14,500, the June 2019 highs.
Chart courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author. This is not investment advice. Do your research.