Bitcoin has become a tirelessly rising asset. The leading cryptocurrency hit another record, reaching $ 28,387 on Sunday.
However, the bulls could not push the Bitcoin price towards the psychological level of $ 30,000. Some profit was made which caused the cryptocurrency to drop to $ 25,772.
However, the downward trend during the day was short-lived. traders / investors have returned to the Bitcoin market. The price is back to gain the $ 27,000 reliable support level.
Bitcoin and $ 30k
The withdrawal of Bitcoin on Monday prompted many analysts to see a follow-up scenario with a bullish trend.
The technical setup predicted $ 30,000 as the primary upside target as shown in the graph below.
However, some dissenting views 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. He stated that in the next big sale, the cryptocurrency could drop below $ 20,000.
On the other hand, the foundations are in a full upward trend and promises that the Bitcoin price may rise to $ 30,000 on the eve of the next New Year. There are three reasons for an ongoing rally to happen
The US House of Representatives passed a law Monday to increase direct economic aid to millions of Americans, following President Donald Trump’s unilateral request.
The law, which was passed by 275-134 votes in the Democratic front-led Congress, suggested changing the amount of incentive controls from $ 600 to $ 2,000. The offer came the day after Trump signed his second COVID-19 aid bill on Sunday night, paving the way for $ 900 billion in aid to American homes and businesses.
Bitcoin responded optimistically to the stimulating news in line with its previous rally following the US government’s $ 2.3 trillion coronavirus aid announcement in April 2020.
Therefore, if the Republican-controlled Senate allows the amended bill to pass, the overall size of the stimulus package will increase by large margins. This will further reduce the US dollar and benefit Bitcoin in this process.
100 million dollar investment
When 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 ranks of mainstream companies and investors investing in Bitcoin. Greenpro Capital, a business intelligence firm based in Hong Kong, announced that it will raise $ 100 million in debt to purchase Bitcoin, calling the cryptocurrency “a trusted store of value in the future.”
The news confirmed the theory that institutions will buy Bitcoins 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.
Internet searches for the keyword ‘how to buy bitcoin’ achieved an excellent score over a 12-month period, indicating that the cryptocurrency market is now attracting more retail players.
Active Bitcoin wallets have increased more than 100 percent in 2020.