The price of BTC has fixed above $ 5,700, having risen in price by 6.5% per day and having updated the maximum of 2019. On some cryptocurrency exchanges, the leading asset is trading above $ 5800.
Over the past 24 hours, the price of BTC has grown by 6.5%
As analyst Peter Brandt said this morning, even before the rapid growth of BTC, the indicators of the weekly moving average (MA) form a similar pattern, which was noted in 2015 on the eve of a major bull rally.
The last time when the direction of the weekly MA was developed from the bottom up was in November 2015, when BTC started moving from $ 340 to $ 19800.
Such a BTC dynamic is evident even in spite of contradictory news about a lawsuit against iFinex. Recall, the Prosecutor General's Office in New York said that Bitfinex had improperly used $ 900 million in Tether’s reserves in an attempt to “hide” the existence of losses in the amount of $ 850 million.
Will BTC's bullish momentum hold?
Since January of this year, the price of BTC has grown by more than 55% - from $ 3,700 to $ 5,800.
According to analysts, the dynamics of the BTC price in recent months was caused by technical factors, but fundamental factors, such as the growing volume of transactions in the blockchain dominant cryptocurrency, as well as growing institutional interest, could also affect the asset market.
Last month, analyst firm Diar reported that the volume of BTC operations in the blockchain increased, reaching a 10-month maximum:
The monthly volume in US dollars, conducted within the chain, reversed the downward trend, when a 10-month high was reached in April. But this, in all likelihood, happened due to the recent increase in the BTC price, and not because of the actual increase in the use of the asset.
Today, a technical analyst, known online as Crypto Rand, noted:
Bitcoin sets new local maxima, despite the entire FUD. Key resistance levels are here. Time to watch.
Earlier, at the end of April, he noted the same levels of resistance and target asset growth zones:
In the coming months, in order for the BTC to confidently step over key resistance levels, strong incentives must emerge.
Over the past 48 hours, the real indicator of BTC trading volume, which is calculated by estimating the turnover of 10 exchanges with confirmed daily volume in excess of $ 1 million, such as Kraken and Binance, rose to 540 million dollars.
Recall that in early March, analysts Bitwise Asset Management estimated the daily volume of the spot BTC market at 270 million dollars. As of May 3, OnChainFX data indicate that this figure has doubled.
In the coming months, if a relatively large daily volume of BTC will be maintained, and the inflow of institutional capital during the year will meet investors' expectations, it is expected that bullish dynamics will continue in the BTC market.
Institutions could become the next catalyst
on May 2, representatives of Fidelity Digital Assets, a subsidiary of the world's fourth largest asset management company (assets of about 2.14 trillion dollars), said in their report that over the next five years, the number of institutional crypto investors will increase significantly. Moreover, according to the analysis, about 22% of institutions have already invested in cryptocurrency.
According to the survey, about 22% of institutional investors already have some access to digital assets, with the majority of investments made in the last three years. Four out of ten respondents said they are open to [allow for] investment in digital assets over the next five years.
Although the pace at which institutional capital will enter the crypto market in the foreseeable future remains unclear, large financial institutions have already noted an increase in demand for a crypt from institutional investors.