Buyers continue to “pick up” bitcoin during the development of downward corrections. Having tested the level of $17,600, quotes quickly rose to $19,500, and earlier today broke through the level of $20,000. Many traders note that a fall below the $18,000 level “pushes” investors to make new purchases.
BTC / USD quotes are confidently repelling the uptrend line, which can be plotted on the asset’s 4-hour chart. Perhaps its breakdown would have provoked the development of a correction, but the price remains above the line, which confirms the pressure from the bulls.
Moreover, we see a breakdown of the downtrend line on the RSI indicator. As a rule, such a signal indicates an early upward movement with a breakdown of the nearest resistance and continued price growth.
Positive information is the growth in the total number of wallets that hold more than 1 BTC. The values are at an all-time high, indicating that investors continue to hoard cryptocurrency and are not yet considering selling. In 2020, the number of addresses with a balance of more than 1000 BTC also increased significantly.
The digital yuan is not intended to replace the world’s fiat currencies (such as the US dollar or the euro). Rather, such an asset is intended for various types of payments between large companies, as well as an investment vehicle. As the digital yuan develops, there is a growing concern within the ECB that the digital euro is seriously lagging in this matter.
Sweden is also actively exploring the possibility of switching the country’s payment infrastructure to e-kroon. Of course, all these actions by the authorities and Central Banks will only “fuel” interest in the crypto industry as a whole, which will positively affect the prospects for the continued rally in BTC / USD.
Insurance and pension funds are also ready to invest part of their assets in bitcoin. In percentage terms, such investments will be small. However, the very fact that large companies intend to buy cryptocurrency may attract the attention of traditional investors who are still thinking about acquiring digital assets.
Earlier, large private investors expressed their readiness to exit gold for buying bitcoin since it fundamentally looks “weaker” than a crypto asset, which is explained by the complexity of its movement and settlements. But the main factor in the popularity of cryptocurrencies is still the decline in the profitability of precious metals and the constantly growing profit from bitcoin investments.
From a technical point of view, the Triangle pattern is visible on the daily chart. A breakdown of its upper border with the price-fixing above the $20,000 level will indicate its rise to $23,000 as part of the pattern development. An additional signal in favor of this is a rebound from the support line on the RSI indicator.
It will be imperative for buyers to break through the local maximum. Otherwise, a downward rebound with a fall in the asset value below the $17400 level will indicate the end of the current trend. In this scenario, it will be necessary to postpone the height of the “Triangle” model down to determine the goal of further reducing the value of the leading digital asset.