Bitcoin has not managed to overcome any of the support that we discussed in previous articles. Thus, the upward movement is resumed. Today, on Saturday, the quotes of the “cue ball” increased by 2.5 thousand dollars, and the price again went above $ 60,000 per coin. Of course, before the update of the previous local and absolute maximum near the level of $ 61,700, it is too early to talk about a full-fledged resumption of the upward trend. The classic “double top” reversal model can still form, however, the cryptocurrency is close to heading for the levels of $ 65,500 and $ 70,000. At the moment, it can be stated that the majority of investors continue to believe in the growth of bitcoin, thus, investments in cryptocurrency have resumed. However, there are few willing to sell the “cue ball”, thus, the rate has refrained from overcoming all three levels of support.
Meanwhile, Tom Jessop, head of digital assets at Fidelity Investments, a financial holding company, said in an interview that bitcoin is now at a turning point for itself in terms of perception by institutional investors. According to Jessop, bitcoin is gradually entering the circle of traditional financial instruments and the attitude of investors to it is changing to a positive one. Jessop also noted that the growth of bitcoin quotes is facilitated by the policy of low rates applied by central banks, low yields on other “traditional” assets, as well as high economic stimulus measures that make investors fear inflation. “I think we have reached a tipping point. The pandemic has been a catalyst for institutional adoption, particularly the use of cryptocurrency as digital gold,” Jessop said.
Earlier, the head of Fidelity Institutional Asset Management, Michael Durbin, said that most managers and investors do not yet fully understand the essence of bitcoin and cryptocurrencies in general. According to Durbin, “the vast majority are in training mode”. Durbin predicted an increase in interest in cryptocurrencies over the coming years.
Thus, although recently there have been no reports of large investments of institutional investors in bitcoin, it seems that large investors continue to slowly buy up available coins, which leads to new updates to the records of the value of the number one cryptocurrency in the world. At this time, even central banks do not pose any threat to bitcoin. There are no rumors that the largest of them are ready to introduce bans or restrictions on the cryptocurrency sphere. Many people are testing their “digital currencies”, however, it is still unknown whether they will create real competition for bitcoin and its “brothers”. After all, central banks are going to introduce their digital currencies to just reduce the popularity of bitcoin and regain full control over cash flows, which was lost since the advent of cryptocurrencies.
Technically, nothing changes. At the moment, the quotes of the “cue ball” are above the level of $ 60,000, however, it will be possible to talk about a full-fledged overcoming only tomorrow. All three levels of support (the red lines in the illustration) have not been overcome, so from a purely technical point of view, an upward movement is now most likely. Now, if the market participants manage to overcome $ 61,700, then the next target will be the resistance level of $ 65,408.
The material has been provided by InstaForex Company – www.instaforex.com
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