Even as virus-induced instability shakes the stock market, bitcoin continues to thrive. At the time of writing bitcoin is trading at $13,712, giving it that juicy 4.8% gain for the day. Recent price action has marked a new 16-month high, a 25% up on the month and a 87% up on the year-to-date basis.
As bitcoin is above the 10- and 50-day moving averages, technicians see bullish signals. Bitcoin hit as high as $13,756 and has found support around $13.6k. It seems like bitcoin is gaining speed so should I mention the next resistance level or will it not matter in the next 24 hours?
Traders believe that the next resistance level to beat is $13,875. Why? Because bitcoin peaked at $13,970 in June of 2019 and even though this peak was achieved more than a year ago, it still serves as an important area for sellers. Another reason is that technical analysts say that the weekly candle chart of Bitcoin shows $13,875 as the next “logical resistance” Popular crypto trader Edward Morra said:
“On high time frame chart this weekly level ~$13,875 is next logical resistance. It rejected 2019 rally pretty hard, second test will be less violent but I believe there will be a reaction. Taking out that ’19 high into weekly supply is one to watch for.”
For the bulls, the ideal scenario is for bitcoin to rise above $13,875 and remain there for some time. This type of stability would indicate a healthy reclaiming of a multi-year resistance level.
For the bears, if bitcoin’s price fakes out above $13.7k and drops back into the $13k-$13.2k range, deviation is confirmed by the bearish retest. Then it would retrace back to $12.5k and then possibly $11.6k.
Keeping Bitcoin Safe
Bullish sentiment continues as bitcoin is being moved from exchanges into secure wallets for a long-term hold. This was seen on Monday Oct. 26th as the total number of bitcoin held on exchanges fell to a two-year low of 2,478,799.
BTC Bet Pays Off
MicroStrategy’s bitcoin investment of $425 million at the time of purchase in August and then again in September is paying off in a big way. After our recent price surge the company’s holding is currently worth more than $525 million, that’s an on-the-books profit of $100 million. This beats the company’s net income in the last three and a half years.
This is quite the hedge against, not only inflation but also business operations. CEO Michael Saylor is also looking to increase the company’s holdings. As MicroStrategy remain bullish, bitcoin will gain significant notoriety and other institutions will look to take a piece of the pie. Trading products built around the asset will also encourage institutional investors to dip their toes in as gaining financial exposure will be easier than ever.
A great example of this can be seen with Grayscale. According to their Bitcoin Investor Study report, more than half (55%) of their survey respondents expressed interest in bitcoin investment products. The survey digitally polled a sizable number of individuals in the U.S. between June and July. This has been a significant increase when compared to their last year’s poll when they found that only 36% of investors were interest in 2019.