CryptosPrediction/Analysis

4 reasons Bitcoin is bullish. These could bring new ATHs

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Bitcoin has seen bearish action over the past 24hrs as it was rejected northerly at $ 50,000 The market leader cryptocurrency is trading at $ 49.207, with a loss in daily charts of 2.1%.

BTC is moving sideways following the rejection at $50,000 in the daily chart. Source: BTCUSD Tradingview

Experts and investors are closely monitoring current levels. As a CryptoDonAlt pseudonym trader Not noted“This is where market decides” if the trend will be up/down.

CryptoDontAlt, along with other traders, believes this to be Bitcoin’s latest major resistance. A breakout and hold above $50,000 could push the price to new highs.

Bitcoin BTC BTCUSD
Source: CryptoDontAlt via Twitter

The US Federal Reserve, along with other major central banks worldwide, have adopted monetary policy to mitigate the effects lockdowns and the Covid-19 epidemic. Investors were expecting a change in these policies in September.

QCP Capital stated that the FED could make further decisions in December 2021. Bitcoin and other risky assets have more potential for a rally.

The United States will release new data on the Consumer Price Index (CPI) on September 14. This measure is associated with inflation. This event is typically preceded by volatility, and will be relevant to the market’s decision on its trend.

The strong bear attack that was accompanied with high levels of FUD News made it difficult for Bitcoin bulls to defeat. This included attacks against crypto exchanges, DeFi industry and the industry as whole with infrastructure bills.

QCP Capital believes there will be less negative news over the medium term. Therefore, current events will have a less significant impact on Bitcoin’s price action.

In the short term, global regulatory risk has been exhausted. We expect any major crypto regulatory decisions to be made by the first quarter in 2022, preferably from the Senate Banking Committee (SEC)).

Retail Bitcoin investors are making an appearance, and why is this different

QCP Capital also saw a rise in demand but not much in the derivatives market. The image below shows how Bitcoin’s rally reached all-time highs during the first quarter of 2021. This was followed by an increase on perpetual futures funding rates.

Bitcoin BTC BTCUSD
Source: Skew via QCP Capital

This made BTC’s price action dependent on leveraged speculators. This made the rally intractable. At the current levels, Bitcoin-based funding rates and derivatives are showing no signs of similar investor behavior.

Despite today’s slight funding spike on the rally, up to 20% annualized, funding rates and future premiums for BTC and ETH remain low and moderate. This means that the rally was largely driven by spot demand, rather than leveraged speculators.

This could change if Bitcoin reaches its previous highs. However, it’s a positive indicator right now. QCP Capital expects that there will be more consolidation at current levels. They believe that the next month, particularly towards the end of 2019, could see less appreciation than 2020.




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