Bitcoin has become an asset that is steadily rising and breaking new records. The leading cryptocurrency hit another record on Sunday, reaching $ 28,387.
After the market crash in March, Bitcoin became an invested asset to hedge against inflation, but the bulls have yet to push the Bitcoin price towards the psychological upward target of $ 30,000. There was some profit making movement that caused the cryptocurrency to drop to $ 25,772. However, the downward trend during the day was short-lived. Investors have returned to the Bitcoin market. The price is back to regain the $ 27,000 reliable support level.
$ 30,000 Level
The withdrawal of Bitcoin on Monday prompted many analysts to see a follow-up scenario with a bullish trend. Some pointed to the “Bull Pennant” of an understandable reverse technical structure that formed in shorter time frame charts as the cryptocurrency was consolidating sideways. Accordingly, the technical structure predicted $ 30,000 as an upward target for BTC as shown in the chart below.
However, some opposing views have also emerged. According to Michaël van de Poppe, an independent market analyst, Bitcoin seems poised to continue the downside correction primarily due to the “overbought” situation. The analyst stated that the cryptocurrency could drop below $ 20,000 in the next big sale. On the other hand, the foundations are in a full upward trend and promises that the Bitcoin price may rise to $ 30,000 in the coming days. There are some reasons to show that the rally could continue and the price could hit the $ 30,000 level.
Trump Signs Covid-19 Economic Support Package
First, the House of Representatives passed a law Monday to provide direct economic aid to millions of Americans, following a unilateral request from US President Donald Trump. The measure, which was adopted by 275-134 votes in the Democratic-led Congress, suggested changing the amount of incentive controls from $ 600 to $ 2,000. The day after Trump signed the second COVID-19 aid bill on Sunday night, he paved the way for $ 900 billion in aid to American homes and businesses. Bitcoin reacted optimistically to the warning news in line with the US government’s previous rally following the $ 2.3 trillion coronavirus aid announcement in April 2020. Thus, if the Republican-controlled Senate allows the amended bill to pass with a winning vote, the overall size of the stimulus package will increase by large margins. This can further reduce the dollar and benefit Bitcoin in this process.
Increasing Institutional Interest
Moreover, when the incentive growth hit a dead end, Bitcoin found more reasons to grow its market value thanks to its ever-expanding institutional base. Another company on the Nasdaq list has joined the mainstream companies and investors investing in Bitcoin. Greenpro Capital, a business intelligence firm based in Hong Kong, announced that it is taking action to buy Bitcoin and called the cryptocurrency a “trusted future store of value.” The company’s CEO stated that “he will also invest his own money in BTC”.
The news also confirmed the theory that institutions will buy Bitcoin even when trading near all-time highs. This could allow traders to identify potential accumulation zones to plan medium-to-long term bullish trends and create an ideal setup for the price to demand the $ 30,000 level.
Google searches for the keyword ‘how to buy bitcoin’ reached an excellent level in a 12-month period, indicating that the cryptocurrency market is now attracting more retail players. This can push the price up in investors.