Has the price of Bitcoin officially reached a new bull market in 2020?
When a US federal court declared Bitcoin as “money” on Friday, and responded by showing signs of life by breaking a sideways trading range, the crypto community certainly wasn’t expecting a run to $ 11,000.
But after a green weekend and a race beyond the $ 10,500 mark, here we are. BTC jumped an additional 5% to round it off. The major cryptocurrency is now up around 53% year-to-date (YTD).
According to some analysts like Bitazu Capital’s Mohit Sorout, the Bitcoin market was supposedly bracing for this huge move in response to the multi-year descending trendline pattern since the 2017 bullish rally.
He also thinks it could be “the start of something really massive”. Commenting on the rally, prominent crypto trader and analyst Josh Rager fanned the possibility of Bitcoin’s price closing above the $ 11,555 mark this week.
This would, according to him, be an explicit confirmation of a new bull market.
BTC – imagine if Bitcoin closes above $ 11,555 on the weekly chart this coming week (yes, it could retreat before or close below).
But a close above this level on the weekly would be a clear and complete confirmation
What about CME Futures? Is it a Bull Trap?
Bitcoin’s latest rally to $ 11,000 left a huge CME futures gap between the $ 9,600 and $ 9,900 area. Industry observer Chris Dunn was quick to point it out. If the gap narrows, he said, it could lead to the destruction of many hop sedated retail players.
So here’s the big question – will this be the first CME gap that doesn’t close, or are we going to get a deeper pullback to trap retail investors by destroying the market’s buy button? pic.twitter.com/xF0cgGLTu2
– Chris Dunn (@ChrisDunnTV) 27 July 2020
But a Bloomberg Crypto Market report released last month says otherwise. According to official literature, analysts at the mainstream media house believe that “favorable Bitcoin futures trading trends on the CME” will support the BTC price above the $ 10,000 level. To quote the report:
A Bitcoin futures price stabilization premium supports the market and indicates more institutional buying and holding interest. The 30-day average of Bitcoin futures contracts traded with the CME relative to the price released by Bloomberg has recovered from the recent decline, which exceeded the previous low. Our chart depicts futures contracts averaging just over 1% above the Bloomberg price (XBTUSD).
Overall, according to Bloomberg, there is a clear appreciation of the institutional interest in Bitcoin as a profitable investable asset. Any activity on CME will only support long term bull case.
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