Institutions continue to buy more Bitcoins by adding fuel to the bull market.
After a month-long consolidation period, the buying pressure behind Bitcoin is finally reflected in prices. The flagship cryptocurrency is on the verge of rising to $ 70,000, overcoming a significant resistance level.
Corporate demand boom
According to Bloomberg, Tesla’s decision to allocate some of his wealth to BTC was a “turning point” that encouraged many organizations to follow suit. The narrative about cryptos has shifted towards “the risks of missing out on Bitcoin’s potential as a global reference digital asset.”
Given these chances, the demand for Bitcoin has risen to an all-time high. From China to the USA, institutions are rushing to buy a piece of the leading cryptocurrency.
In the last week alone, Chinese tech firm Meitu collected about 175 BTC, worth about $ 10 million in total, while business analytics firm MicroStrategy received about 253 BTC at an average price of $ 59,339.
Accordingly, Grayscale increased its total assets to $ 46.10 billion by purchasing $ 1 billion in Bitcoin and other cryptocurrencies.
The growth and gradual maturation of Bitcoin’s spot market creates an increased interest in derivatives markets.
JP Morgan argues that the increased demand for BTC and related derivatives makes it ideal to launch a Bitcoin ETF in the US that could “reduce many barriers to entry and bring new potential demand to the asset class.”
Bitcoin targets new all-time high
While the buying pressure behind Bitcoin has increased significantly over the past week, its price has passed a significant resistance level in the past 24 hours.
BTC managed to come out of a reverse head-and-shoulders formation that developed over the past month on its 4-hour chart. The distance between the neckline and head of the pattern indicates that Bitcoin could rise by about 15% towards the 141.1% or 161.8% Fibonacci retracement level.
These critical areas of interest lie at $ 67,450 and $ 70,330 respectively.
To confirm the optimistic outlook, Bitcoin must continue to trade at $ 59,300 above the reverse head-and-shoulders neckline. The sudden downside impulse below this price barrier can trigger panic among traders, causing prices to retreat to the 38.2% or 23.6% Fibonacci retracement level.
These support levels are located at $ 54,570 and $ 52,960 respectively.