Bitcoin

Will Growing Interest from China Propel Bitcoin’s Price Higher?

Bitcoin (BTC) has incurred a significant amount of volatility as of late which was perpetuated yesterday by news regarding the release of Bakkt’s physically settles Bitcoin futures product, which many investors view as a bullish development for the entire markets.

In addition to this, growing interest from China may help Bitcoin’s price climb higher in the near-future.

Bitcoin Stabilizes Above $10,300 After Recent Recovery

At the time of writing, Bitcoin is trading up over 1% at its current price of $10,330, which marks a significant recovery from its recent lows of roughly $9,500 that were set earlier this past week.

Despite the strong recovery from the bout of capitulation that sent BTC to its weekly lows, many analysts still believe that Bitcoin’s technical formations point to further bearishness in the near-future, which may be supported by the gap in the crypto’s CME futures chart, which currently exists at $8,500.

Despite this, Alex Krüger, an economist who focuses primarily on cryptocurrencies, explained in a recent thread of tweets that there is no guarantee that the gap will ever be filled.

“Even though gaps often fill, gaps are not meant to be filled. Gap filling is a combination of random variations (price moves), self-fulfilled prophecy (traders assign value to gaps), and lack of support/resistance within gaps (i.e. no trades inside),” he explained.

3/ Even though gaps often fill, gaps are not meant to be filled. Gap filling is a combination of random variations (price moves), self-fulfilled prophecy (traders assign value to gaps), and lack of support/resistance within gaps (i.e. no trades inside).https://t.co/NvE3JDTZQv

— Alex Krüger (@krugermacro) August 17, 2019

Will Positive Factors Help BTC Buck Recent Downtrend?

Assuming that a drop to $8,500 is not imminent, it is important to note that the markets have incurred robust fundamental developments as of late, which may help it reverse its recent downtrend and begin climbing higher.

Krüger further noted that there have been multiple bullish developments as of late that could help Bitcoin reverse its recent downtrend.

“Positive factors: Bakkt coming online Sep/23. Fidelity, Ameritrade, ETrade (awaiting news), HNWI & Macro traders interest. Macro narratives (false, but who cares). Retail interest trending (though still low). (Chinese interest in particular tripled in 2019, see,” he explained while referencing the below chart.

15/ Positive factors

Bakkt coming online Sep/23
Fidelity, Ameritrade, ETrade (awaiting news)
HNWI & Macro traders interest ⬆️
Macro narratives ⬆️ (false, but who cares)
Retail interest trending ⬆️ (though still low)

(Chinese interest in particular tripled in 2019, see 👇) pic.twitter.com/KJ6NlfkG3F

— Alex Krüger (@krugermacro) August 17, 2019

Assuming that the aforementioned fundamental factors, in combination with growing interest from China, helps Bitcoin reverse its recent downtrend, it is likely that $12,000 will be the next major level of resistance for the cryptocurrency.

Featured image from Shutterstock.

Show More
Back to top button
Close
Close