Yesterday, the price of the biggest crypto blue-chip broke through the $7k resistance, and since then, it has firmly settled above that psychological mark. While at one point, it climbed over $7.1k, at the time of writing, it is trading around the $7,065 mark across most exchanges.
Where to now though? Have the besieged bulls already run out of steam, or is a long-term bullish reversal in the making?
Even before the mini-rally past $7k, the signs had been there for the BTC bulls. For nearly three weeks, the price of the premier crypto coin had been trading within a narrow range, riding through a period of low volatility not often seen in crypto markets.
Now that BTC futures are available, those looking to make predictions have yet another tool to turn to. Indeed, right before this latest mini-rally, bearish futures had dipped to a record low, in clear indication that something bullish was in the works.
A few fundamentals unfolded over the last week though, which lent this rally quite a bit of added significance. The SEC once again denied no fewer than 9 BTC ETF initiatives and the crypto market proceeded to just shrug it all off.
Indeed, the significance of these ETF proposals was somewhat bland and dwarfed by other such proposals expected further down the line. Furthermore, it wouldn’t have really made any proper sense for the markets to react negatively to these news, and those who understand what ETFs are and how the ICE’s upcoming Bakkt is supposed to work, knew that perfectly well.
Whether the ensuing market reaction reflected such a way of thinking is highly questionable though. The lack of a price drop should therefore be attributed to bearish exhaustion, rather.
The 4-hour chart gives us a pretty good idea of what we’re looking forward to. According to it, the next resistance level is located at $7,165, and the way things are shaping up, it may be tested soon.
After that, $7,495 is the next mark to watch.
Analysis based on the short-term EMAs suggests that the path of least resistance continues to point upward.
The 200-period EMA for instance (on the 4-hour chart) has been left squarely in the dust already.
The bottom line in technical terms is that the short-term outlook has turned into a bullish one and the above said $7.49k resistance may indeed be put to the test. The outlook is so bright in fact, that some see even the 200-day EMA at $7,800 placed under pressure in the near future.
To let all the air out of the sails of the bulls, a price-move below the $6,500 mark would be required which – at this point – is not likely at all, even though the conditions are quite overbought right now.
What do the fundamentals say though – above and beyond the above-mentioned ETF woes?
Australia is considering the setting up of a blockchain, which would be focused on smart legal contracts, allowing businesses to put it to use directly.
The platform will be called the Australian National Blockchain and if built up as planned, it will effectively automate transactions among businesses according to a set of pre-defined legal terms.
In the meantime, London’s Lloyd has quietly entered the cryptocurrency insurance space, offering protection against crypto theft. The insurance covers not just theft but loss due to natural disaster too.
The custodian directly offering the services is Kingdom Trust. The insurance is part of a service-package that includes qualified custody, as well as transparent reporting to aid with regulatory compliance. Institutional- as well as individual investors are covered.