Friday's reports of an investigation by U.S. regulators targeting Tether, the issuer of the largest stablecoin USDT, put very temporary pressure on Bitcoin, which tested the $66,000 level. However, Tether conveyed that this was myopic speculation, and it had no knowledge of such actions. The market ignored the matter, and the price of BTC quickly returned above 68 thousand, showing the strength of the market, and the relative calm of the markets in relation to Tether's situation. We can also look for the reason for the increases in the US election polls, where the advantage of the favorable cryptocurrencies Donald Trump over Kamala Harris is being consolidated. Bitcoin is not bothered by the rise in yields on 10-year US bonds, which are already at 4.3%.
- Bitcoin is gaining, sucking capital from 'altcoins, where another 13% downward impulse is seen on the Apecoin project, which rose powerfully last weekend buoyed by news of the creation of the ApeChain blockchain
- Optimism on Wall Street indirectly supports risk appetite and Bitcoin. The S&P500 opened the week up 0.5%, with stocks as well as Bitcoin ignoring the strength of the dollar (indicative, after all, of a 'healthy' economy in the States)
- ETFs saw another very high net inflows of $396 million on Friday
- Inflows into Bitcoin ETFs this year (more than $21 billion) have already surpassed the SPDR S&P 500 Trust or iShares Core S&P 500, iShares Gold and other 'traditional' flagship exchange traded funds
- VanEck forecasts Bitcoin's valuation at $3 million, by 2050; interest in long-term BTC investments grows
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Source: Bloomberg Finance, XTB Research
Bitcoin chart (H1 and D1 interval)
BTC resumed its upward momentum in no time, after Friday's sell-off, but again reacted by falling from the $69,000 level. The key for the bulls will be to stay above the EMA50 (orange line of $67,900).
Source: xStation5
Looking at the daily interval, the technical situation looks encouraging for the bulls. Bitcoin has broken out of the downward channel with the top, from a formation resembling a bullish variant of a flag. The cryptocurrency repeatedly tested the levels below the EMA200 (red line), but managed to make up for the losses and showed up, around $50,000. Since then, the gains have reached more than 35%,and Bitcoin is trading above key on-chain supports, where the average price of a short-term holder is currently around $65,000. Key support is at $65,500 (23.6 Fibo retracement of the upward wave from January) and the EMA200 at $62,000.
Source: xStation5
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