Bitcoin's meteoric rise: Renewed confidence in the leading crypt
Bitcoin has once again staged an impressive rally, hitting two-year highs in the early hours of this past morning. This rally is mainly attributed to signs of capital inflows from ETF funds launched earlier this year. The cryptocurrency has seen an increase of around 10%, bringing its price to $56,293.4.
It is remarkable the change in outlook for Bitcoin, which at the end of 2021 suffered a significant drop to $14,000. However, with a broader and more diversified crypto market, it has managed to recover its value remarkably. Since Epiphany, it has experienced a 34.35% appreciation, evidencing a sustained uptrend. Always considering the risk implying crypto’s at all times since they are very volatile assets the prices can float in a very strong manner.
From a technical point of view, on the chart we observe an organized construction with the intention of overcoming the top of a bullish channel. This has been occurring in advance already following the legal consolidation of ETFs on Bitcoin in the 'Hamburger Country' as we previously reported. However, this upside is not likely to be immediate, given that the RSI indicator suggests significant overbought conditions, peaking at 87.70% at the time of such a rally and currently sitting around 75.68%. Therefore, it is plausible to expect a price pullback or sideways consolidation in the short term to strengthen its position and entrench its value, which could last for a season. It would not be surprising if with all the 'Hype' there is a rally in the direction of Bitcoin's all-time highs.
Ion Jauregui - AT Analyst
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It is remarkable the change in outlook for Bitcoin, which at the end of 2021 suffered a significant drop to $14,000. However, with a broader and more diversified crypto market, it has managed to recover its value remarkably. Since Epiphany, it has experienced a 34.35% appreciation, evidencing a sustained uptrend. Always considering the risk implying crypto’s at all times since they are very volatile assets the prices can float in a very strong manner.
From a technical point of view, on the chart we observe an organized construction with the intention of overcoming the top of a bullish channel. This has been occurring in advance already following the legal consolidation of ETFs on Bitcoin in the 'Hamburger Country' as we previously reported. However, this upside is not likely to be immediate, given that the RSI indicator suggests significant overbought conditions, peaking at 87.70% at the time of such a rally and currently sitting around 75.68%. Therefore, it is plausible to expect a price pullback or sideways consolidation in the short term to strengthen its position and entrench its value, which could last for a season. It would not be surprising if with all the 'Hype' there is a rally in the direction of Bitcoin's all-time highs.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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