Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin Takes Aim At $70,000 As Institutional Demand Skyrockets

By Crypto Briefing (Ali Martinez )CryptocurrencyApr 12, 2021 12:46AM ET
www.investing.com/analysis/bitcoin-takes-aim-at-70000-as-institutional-demand-skyrockets-200572456
Bitcoin Takes Aim At $70,000 As Institutional Demand Skyrockets
By Crypto Briefing (Ali Martinez )   |  Apr 12, 2021 12:46AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Institutions continue buying more Bitcoin, adding fuel to the bull market.

Key Takeaways

  • Bitcoin appears to have resumed its uptrend after a prolonged stagnation period.
  • Now, the only resistance level that separates BTC from new all-time highs is the $62,000 hurdle.
  • Breaking through this barrier would likely see prices rise to $70,000.

Following a month-long consolidation period, the buying pressure behind Bitcoin is finally being reflected on prices. The flagship cryptocurrency has broken through a crucial resistance level, threatening to rise toward $70,000.

Institutional Demand Skyrockets

According to Bloomberg, Tesla's (NASDAQ:TSLA) decision to allocate some of its wealth into BTC served as an “inflection point” that has encouraged many institutions to follow suit. The narrative around cryptos has shifted toward “the risks of missing out on the potential for Bitcoin becoming the global benchmark digital asset.”

Demand for Bitcoin has risen to an all-time high given these chances. From China to the U.S., institutions are rushing to get a piece of the pioneer cryptocurrency.

Over the past week alone, Chinese technology company Meitu (HK:1357) scooped up roughly 175 BTC at an aggregate value of approximately $10 million, while business analytics firm MicroStrategy (NASDAQ:MSTR) raked in roughly 253 BTC at an average price of $59,339.

Along the same lines, Grayscale bought another $1 billion worth of Bitcoin and other cryptocurrencies, bringing its total assets under management to $46.10 billion.

Tweet
Tweet

Grayscale Table
Grayscale Table

The growth and gradual maturation of Bitcoin’s spot market are generating heightened interest in the derivatives markets.

JP Morgan maintains that the “richness of [Bitcoin] futures” is quite “acute” as the CME BTC contract offers a 25% annualized slide relative to spot. On other unrelated exchanges, it can be as high as 40%.

“Bitcoin ‘yields’ implied by futures are substantially higher than all major currencies across developed and emerging markets, and the situation is even more pronounced on offshore exchanges… Compared to the explicitly deflationary monetary policy and cross-border transferability of Bitcoin, this hardly seems a plausible substitute,” said JP Morgan.

The American investment bank maintains that the rising demand for BTC and related derivates products makes it ideal to launch a Bitcoin ETF in the U.S., which “could reduce many barriers to entry, bringing new potential demand into the asset class.”

Bitcoin Targets New All-Time High

As the buying pressure behind Bitcoin surged substantially over the past week, its price sliced through a crucial resistance level in the past 24 hours.

BTC has managed to break out of an inverse head-and-shoulders formation that developed over the past month on its 4-hour chart. The distance between the pattern’s neckline and head suggests that Bitcoin can rise by nearly 15% toward the 141.1% or 161.8% Fibonacci retracement level.

These critical areas of interest sit at $67,450 and $70,330, respectively.

BTC/USD Daily Chart
BTC/USD Daily Chart

For the optimistic outlook to be validated, Bitcoin must continue trading above the inverse head-and-shoulders’ neckline at $59,300. A sudden bearish impulse underneath this price hurdle could trigger panic among investors, causing prices to retreat to the 38.2% or 23.6% Fibonacci retracement level.

These support levels sit at $54,570 and $52,960, respectively.

Original Post

Bitcoin Takes Aim At $70,000 As Institutional Demand Skyrockets
 

Related Articles

Crypto Briefing
IDEX Announces Move To Target MEV On Ethereum By Crypto Briefing - May 07, 2021 1

IDEX (NYSE:IEX) is launching “hybrid liquidity” pools combining an order book and trading engine with liquidity pools. The exchange is hoping to prevent slippage and...

Bitcoin Takes Aim At $70,000 As Institutional Demand Skyrockets

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Ron Love
Ron Love Apr 12, 2021 7:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
$100K before end of 2021
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email