What Do Technical Indicators Point For Bitcoin?
What do technical indicators point for Bitcoin? What awaits the leading cryptocurrency?
Leading cryptocurrency Bitcoin (BTC) is showing a strong recovery when trading close to the combination of technical support strengthened by some factors.
Bitcoin is building something that looks like a rising triangle pattern, confirmed by more than two confirmations of the upper and lower trend lines that serve as resistance and support respectively. As of this Friday, BTC / USD is testing the support trendline for a potential retracement move.
The trend line of the descending triangle pattern seems to be converging with the support trend line of the rising triangle pattern. This protects Bitcoin from further falling while doubling the strength of the region. From this point of view, there is a difference between Bitcoin’s rising volume and its falling price. This shows a technical rise.
However, on the other hand, it is stated that if more traders want to secure their profits, the cryptocurrency may risk a long downside correction below the assumed price floor. Some analysts predict that Bitcoin could drop to $ 16,000 levels. In addition, analysts say there could be a major pullback to the previous high near $ 20,000.
The formation of the ascending triangle formation also supports this idea. In the past, each of Bitcoin’s attempts to close below the support trend line faced strong buying pressure from the bulls. As a result, price losses decreased and rose to the upper trend line of the pattern.
On a fractal basis, a reversal towards formation resistance can be seen in retesting the current support trend of BTC / USD. This means an all-time high formation of around $ 21,000.
Institutional Bitcoin Investors Buying Large Amounts of BTC
Massachusetts Mutual Life Insurance Co, a well-established insurance company, announced on Thursday that it purchased $ 100 million worth of Bitcoin for investment purposes.
Although this amount seems small compared to the amount MassMutual currently manages (approximately $ 235 billion in assets), it is significant in the sense that it means Bitcoin will rise. Bitcoin’s price hit the record at around $ 20,000 in late November, with mainstream firms including MicroStrategy and Square investing in BTC as a measure against inflation.
In fact, Tyler Winklevoss, co-founder of Gemini, said that MassMutual’s latest investment guaranteed that Bitcoin will reach $ 500,000 in the future. . Speaking at the Singapore FinTech Festival, Winklevoss noted:
“The type of investors in this bull run is very different. Super sophisticated institutional investors like the legendary Paul Tudor Jones, [Stanley] Druckenmiller.”
At the time of writing, Bitcoin was traded about 11 percent below its ATH. This indicates a bearish correction that typically follows parabolic upward movements. Bitcoin (BTC), the leader of the cryptocurrency world, has surged almost 150 percent this year.