2023-6-26 19:30 |
Cryptocurrency prices continued roaring back during the weekend as investors continued buying the dip. Bitcoin, the biggest coin in the industry, jumped to a one-year high of over $31,000. In all, the total market cap of all digital currencies jumped above $1.18 trillion while BTC has beaten the Nasdaq 100 and Dow Jones indices this year.
Crypto entering a new phaseThe current crypto rally is mostly because of the actions by large players in the financial industry embracing cryptocurrencies. Firms like Blackrock, Invesco, and WisdomTree have all applied for a spot Bitcoin ETF. Analysts believe that the SEC will allow the fund by Blackrock since the firm is one of the most connected companies in Wall Street.
Another important crypto news was the launch of EDX Markets, a new crypto exchange backed by Schwab, Citadel, and Fidelity. As I wrote here, this exchange is offering non-custodial services to institutional and individual investors. The three backers are some of the most sophisticated players in Wall Street, with Citadel being the biggest market maker in the country.
Therefore, with Bitcoin being in a bull market, some analysts believe that it could continue rising for a while. Besides, by moving above $30,000, it is a sign that there are investors in the market willing to place higher bids.
Most importantly, Bitcoin crossed the double-top level of $30,900. This means that it invalidated the bearish thesis caused by this pattern. In a note, Strahinja Savic, off FRNT FInancial described this as a new phase, saying:
“A sustained move above USD $31,000 would signal us entering a new phase where market participants are starting to reprice some of the previous regulatory anxiety. Despite what comes across as antagonistic rhetoric from some regulators, the bitcoin spot ETF applications have amplified the view that institutions remain interested in crypto.”
Caution is warrantedIf this view is confirmed, it means that Bitcoin price could continue soaring in the coming weeks. Because of the crypto correlation that exists in the crypto industry, other altcoins like Aave, Uniswap, Synthetix, and Filecoin will also continue rising. The same is true for Coinbase shares and other crypto mining stocks like Hut 8 Mining, Argo Blockchain, and Marathon Digital.
Still, there is need for caution. For one, this move above $31,000 happened in a low-volume environment, signaling that it could be a false breakout.
The other big risk is that Bitcoin seems to be forming a bearish divergence pattern. As shown below, the Relative Strength Index (RSI) and the Stochastic Oscillator have formed this divergence pattern on the 4H chart. This is a signal that the price could pull back in the coming days.
The post “A new phase” – Analyst issues impressive Aave, Uniswap, Filecoin, Bitcoin prediction appeared first on Invezz.
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