The Bitcoin price saw a significant boost, pushing through resistance at $27,000 and even breaching the subsequent hurdle at $29,000. Interestingly, many prominent analysts, such as Michaël van de Poppe, attribute this bullish outlook to global behemoth Blackrock’s intention to debut into the crypto industry. Blackrock filed an application with the Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF), sparking optimism among investors and validation of the crypto market for institutional players.
In another notable development, Fidelity Investments has collaborated with Citadel Securities to launch a cryptocurrency exchange, EDX Markets. Coming on the heels of Blackrock’s ETF announcement, EDX Markets aims to serve brokers and investors interested in the crypto market while avoiding the regulatory troubles that led to FTX’s exit from the business in November. A segment of Wall Street institutions maintains interest in the crypto space, despite significant regulatory pressure from the SEC and a considerable market slowdown over the past year and a half.
With the upswing to $29,000, we might finally see Bitcoin price shun the downtrend it has been in for more than one and a half years and usher in a bullish era, potentially breaking the $30,000 level. Supporting this sentiment, the Moving Average Convergence Divergence (MACD) indicator has validated a buy signal on the daily charts. However, prudence would dictate waiting for Bitcoin price to confirm support at $28,000 or a breakout above $29,000 before triggering new long positions to avoid sudden pullbacks and potential losses.
Loss of support at $28,000 could cause acclimation to a sharp drop to the next support at $27,000. However, given the entrance of institutional investors such as Blackrock, Fidelity Investments, and Citadel Securities, shorting Bitcoin carries significant risks.
These exciting developments hint at growing institutional interest in the crypto space, but caution is urged in trading, as a clear bullish signal has yet to emerge. As the market reacts to these events and potential regulatory pushbacks, it is crucial to remain attentive to the changing landscape and make informed decisions.
Source: Coingape
