Market Analysis: Bitcoin Breaks Psychological Level of $30k


On Friday-Sunday, the price of BTC/USD several times exceeded the round level of 30,000, but the excess was short-lived; soon, the price rolled back down. But the pressure of the bulls did not weaken, and since the beginning of Monday, the price of bitcoin rose above 37,000.

A combination of bullish factors contributed to the rise in bitcoin prices:
→ the threat of a financial crisis in the USA. Congress without a speaker, the budget has not been approved, the S&P-500 is near its 5-month low. Legendary investor Peter Schiff expresses the opinion that a crisis is inevitable due to the actions of the Fed.
→ Expectations that the SEC will approve a bitcoin ETF in the near future, and this will open bitcoin to institutional investors. According to JPMorgan, this will happen within a few months. Positive signals will come from BlackRock and VanEck, which have filed bids.
→ Refusal by the SEC to claim against Ripple Labs.
→ Geopolitical tensions in the Middle East. Bitcoin is gaining relevance as an asset that can become a safe haven for capital.

The graph shows that:
→ the former resistance of 28,100 served as a support for a successful attack on USD 30k;
→ bitcoin price actions since mid-September have formed an ascending channel.

At the peak of the morning bullish momentum on October 23, the BTC/USD rate reached the upper limit of this ascending channel. From a short-term point of view, the price may roll back due to the activation of sellers in the area of the highs of the year and the upper border of the specified channel. But given the fundamental background, it is permissible to assume that the bulls are capable of new achievements.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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