After slightly stabilizing above $ 10,500, Bitcoin tried to take a bullish momentum and test resistance at $ 11,000 to $ 11,100. The area served as a support in August, and the SMA50 is there daily.
It seems that breaking this area is very difficult and may limit the market cows in the short term. However, the fundamental analysis of Bitcoin is very positive in the long run, and it is possible that the king of cryptocurrencies will be on the verge of starting a strong uptrend.
Investment company Grayscale added 17,000 bitcoins to its capital last week. According to Bybt.com, this is the largest asset purchase by the company in the last three months.
http://s15.picofile.com/file/8409521792/Grayscale_investment_position_637368739901950624.pngThe total value of this purchase at the current price of Bitcoin reaches about $ 200 million, and the total value of the bitcoins purchased by this company brings the investment to $ 4.8 billion.
These moves show that the interest of investment institutions in buying bitcoin has changed. Microstrategy also recently announced that it has spent nearly $ 500 million on bitcoin. According to FXStreet, about 90% of investment firms will change their portfolio within the next 5 years, and digital currencies will be part of it.
Rising political tensions and economic crises in the world continue to affect the digital currency market. For this reason, the rise of bitcoin as long as global markets are uncertain may be problematic.
During this time, Bitcoin has moved up and down the US stock market, and the US election, as well as the new wave of the Corona virus epidemic, could once again have an adverse effect on the digital currency market.
From a technical point of view, as long as Bitcoin is above $ 11,500 to $ 11,800, it still has bullish potential. IntoTheBlock data suggest that the high volume of bitcoins in a resistance area may prevent bitcoin prices from rising. According to this information, 1.1 million Chinese block addresses hold more than 800,000 bitcoins.
This area can reduce the buying pressure in the market. Holders who have been holding hands for a long time may also intend to sell their assets and weaken the uptrend.
On the other hand, Bitcoin can be seen at the top of healthy support. About 1.4 million Chinese blockchain addresses bought about 1 million bitcoins between $ 10,500 and $ 10,800. This area makes it difficult for market bears to fall in price.
Source:FXStreet