Bitcoin (BTCUSD) Breaking Round Number Resistances
Bitcoin’s technicals showed us that a bottom had formed, tested and setup for a FIBO price increase. Several technical analysts called out the rise because they saw a inverse head and shoulders pattern in its action.
This pattern tells us the price of a security alternates between successive troughs before breaking out into new highs.
Bitcoin’s dominance in cryptocurrency markets is a Key indicator of its price movement.
As cryptocurrency markets bottomed, Bitcoin’s dominance rate has decreased because investors have diversified their holdings into other cryptocurrencies for profits.
BTC’s rally from it 7-month lows is accompanied by the sharp rise in the dominance rate indicates the bargain hunters are likely betting on further sustainable gains in Bitcoin prices and participants are not buying BTC to venture into alternative cryptocurrencies.
That said, the sharp rise in the BTC dominance rate, as seen in the last 4 weeks, can be considered a sign of investor confidence in the current BTC price rally.
A number of positive news developments has also marked the cryptocurrency ecosystem’s recent highs.
The SEC is said to be considering the prospect of Bitcoin ETFs again. Their introduction is expected to make cryptocurrencies accessible to common investors and inject liquidity into the markets. Further capital is expected to follow in the form of institutional investors.
In other news
Prominent cryptocurrency startups Coinbase and Ledger recently announced custody solutions aimed at luring institutional investors. The Vice President at Coinbase says that the company is planning to add a 3rd tranche of institutional investors to its customer list. Unlocking the barriers to the flow of capital along with advances in establishing a regulatory framework for Bitcoin will help open the gates for institutional money into the cryptocurrency. It is likely that the current hike in prices is a vote of confidence from investors, responding to these promising developments.
Currently, Bitcoin is trading at 8,333.333984, +338.29, or +4.166667%, as of 4:45a BST, the market is open.
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