Posted 6 months ago | by @devadmin
Bitcoin has rallied above $12K, trading above the key resistance for the first time in more than two months.
This signals that Bitcoin could be getting ready to enter its parabolic bull-market. But until $12K is flipped into support the move is meaningless.
BTC is above its 10-day and 50-day moving averages, a bullish signal for technical analysis. However, until $12K is support and $12.5K is breached, which will officially signal the end of the 2018 bear market.
Bitcoin first breached $12,000 around 1 p.m. EST, going as high as $12,058 before settling down. The number one cryptocurrency then surged to above $12,200K overnight.
Bitcoin price has support at the 20-MA ($11,600) and at the $11,500-$11,400 levels. If the price were to dip below, there is also support at $11,200 and $10,900.
Bitcoin’s rally to $12K is accompanied by soaring volumes across the top Bitcoin futures exchanges with institutional bullish bets on Bitcoin (BTC) futures listed on the Chicago Mercantile Exchange (CME) hitting a new record level last month amid reports that BTC has hit a 16 month low in volatility, as Bitboy Crypto previously reported.
The last time Bitcoin was over $12,000 was back on August 19th, according to CryptoCompare, using index-weighted pricing. David Lifchitz, chief investment officer at ExoAlpha, told the NASDAQ that Bitcoin could hit $12,500 in the near future but might face a struggle. “The real resistance level is around $12,500-ish, so until a meaningful breakout above that level, nothing is done, $12,000 is just a psychological level.”
“Bitcoin, having held above $10,000 for more than two months in a row, was a bullish sign, even if it had been trading sideways in a $2,000 range.”
Another institutional investor agreed with Lifchitz that Bitcoin is bullish and breaking records every day.
“We continue to break the record each day for the longest streak a bitcoin trades above $10,000, so overall investor confidence is growing I think,” Michael Gord, chief executive officer of trading firm Global Digital Assets told the NASDAQ.
Lower volatility periods usually signal that substantial price movements are coming, both up and down. Institutional investors are betting on the upside, according to a Commitment of Traders (COT) report published by the U.S. Commodity Futures Trading Commission (CFTC) which stated for the week of Oct. 13th, —institutional investors increased long positions by over 9%. This makes the summation of bullish bets to the record high of 3,500 contracts reached in September.
Bitcoin remained above $10,000 earlier this month despite several bad news items including — the KuCoin exchange hack, U.S. regulators bringing criminal and civil charges against BitMEX, and more recently OKEx CEO arrested with the exchange under investigation.
This comes following Fidelity and JPMorgan both issuing separate reports praising Bitcoin. JPMorgan praised Jack Dorsey for Square’s investment in Bitcoin stating, it’s a “strong vote of confidence” for the cryptocurrency. However, JPMorgan later stated in another report syndicated by Bloomberg that Bitcoin was overvalued by 13% according to its estimates. In that article, JPMorgan strategists including Nikolaos Panigirtzoglou wrote in a note about how they determined Bitcoin’s intrinsic value. The group noted, a drop in Bitcoin in September eliminated much “froth” but it remains about 13% higher than an estimate of intrinsic value, they said. JPMorgan strategists stated they found Bitcoin’s intrinsic value by treating Bitcoin as a commodity and looking at the marginal cost of production.
While Fidelity has bet on a “wave” of people investing in Bitcoin. Fidelity also added that Bitcoin could see its market cap surge to $2 trillion if certain conditions are met. As Bitboy Crypto reported earlier this week, the Fidelity report indicated that institutional interest could increase Bitcoin’s market capitalization by up to $1.3 trillion by capturing just 10% of investments from the alternative investments and fixed income market valued at $13.4 trillion.
Other notable institutional investors believe Bitcoin could see $20K in just three months by the end of the year. Bitazu Capital founding partner Mohit Sorout, former hedge fund billionaire-turned crypto investor, Michael Novogratz, and PlanB believe that Bitcoin will reach $20K by the end of the year.
Watch Bitcoin Crypto in the video below explaining the current market conditions.
Bitcoin is currently trading at [FIAT: $12,231.26] UP +2.6% according to Coingecko at the time of this report.