BTC Goes to $90K: What You Should Look For This Week

Bitcoin (BTC) kicked off the new week by retaining $60,000 in support, breaking through the classic Sunday fall.

Since neither the April nor the October record highs are being retested yet, investors want to see what Bitcoin is capable of.

There are several factors to look out for when charting the potential BTC price movement this week.

BTC spot rate

Ahead of the launch of the third Bitcoin Exchange Traded Fund (ETF), there is increasing focus on gold and other traditional ETFs and the threat that Bitcoin poses to them.

Investment firm Capriole CEO Charles Edwards said CME’s open interest that jumped several spots to number one in the world in a matter of days this week, is a barometer of massive institutional interest.

Edwards has repeatedly stated that ETFs based on futures will provide a “ruthless spot rate” on Bitcoin, allaying concerns about the overall performance of the instrument.

Key Yong Joo, CEO of on-chain analytics company CryptoQuant, noted that every time Bitcoin price approached $60,000, Bitcoin futures totalling $840 million were bought.

2017 Bull Run Tracking

Classically for Bitcoin, weak Sunday turned into bullish Monday as BTC surged above $62,000.

Last week began a 10% decline from an all-time high of $67,100. It was also annoying for many traders that the April peak of $64,900 provided virtually no support. But Bitcoin bulls were still able to resist bearish sentiment.

Analyst Michael van de Poppe suggested in his latest tweet that Bitcoin is on its way to $90,000.

Perhaps October will end with Bitcoin hitting around $63,000.

According to popular analyst TechDev, Bitcoin mimics the 2017 price movement with near-uncanny accuracy, suggesting that it will reach much higher price levels by the end of the year.

VanEck ETF prepares to launch

VanEck’s Bitcoin ETF is getting ready to go to market. The Bitcoin Strategy ETF (XBTF) will have an underlying Bitcoin Futures, 0.65% management fee and will begin trading as the third Bitcoin Futures ETF in the US market.

VanEck also plans to launch a physical ETF and the Securities and Exchange Commission is due to issue its decision on November 14.

Following these changes in the stock market, Bloomberg senior strategist Mike McGlone is confident that Bitcoin futures will now trade like gold during the 2000s.

The first gold ETF, the SPDR Gold Trust (GLD), raised over $1 billion in its first three days of trading in November 2004.

No major exchange sales

At the moment, the number of Bitcoins stored on exchanges is falling. This trend accelerated even more after the May collapse in prices.

The pursuit of new all-time highs for BTC/USD as a whole caused a slight increase in BTC exchange levels, but not significantly given the overall downtrend.

Holders have little interest in selling such a short distance from previous record highs. In addition, it is possible that institutional buyers are not planning to make sudden sales immediately after taking positions.

And on the stock exchanges of financial derivatives, especially active purchases were observed last week.

Changes in market sentiment

Cryptocurrency market sentiment is changing again. Investors are cautious at the moment.

According to the Crypto Fear & Greed Index, erratic optimism no longer matters when it comes to Bitcoin or altcoins.

Last week saw “extreme greed.” This index has since declined in line with the BTC price movement, which was 72/100 as of Monday – simply denoting “greed”.

If the classic top of the cycle is on the Fear and Greed scale of 95/100 or higher, then a possible further rise in price, provided it is slow enough, could continue for much longer.

Post a Comment