Bitcoin has been gaining bullish momentum since last week, adding $1,500 in ten days, leading to mixed expectations about the currency's future.
Bitcoin Gaining Bullish Momentum Heading Towards Historical Monthly Close
Bitcoin has been gaining bullish momentum since last week, adding about $1,500 in nearly ten days, leading to mixed expectations about the cryptocurrency's future by many analysts.
The leading cryptocurrency crossed the previous resistance level of $12,000 over the past week, breaching the $13,000 level that appears to be the support level for the coin, arguing that it could soon head towards the $16,000 level if $14,000 is secured.
Today, Bitcoin traded above 13,850 for the first time since January 2018, the highest since then before falling back above $13,200, and it appears that it is heading towards recording its highest monthly close in the history of the cryptocurrency.
Some believe that Bitcoin It will swallow a lot of capital and will dominate the markets with broad growth in the next 18 months, due to the political and economic uncertainty, confirming that the global financial markets are currently witnessing intense selling and precious metals are witnessing a state of relative calm.
Bitcoin split from Wall Street
Bitcoin’s 2020 rallies showed signs of decoupling from Wall Street, with the coin hitting another 2020 high at over $13,850 and off the 2019 peak as well, and Bitcoin’s dominance soaring above 62.5%, the highest in more than two months.
Interestingly, the cryptocurrency's gains came despite unfavorable events on Wall Street, with those higher gains offset by major failures in the S&P 500, Dow Jones Industrial Average and Nasdaq Composite Index.
PayPal Changes Views of Bitcoin
The world's largest online payments company PayPal's decision to allow customers to buy and sell cryptocurrency on its platforms and hold it in their portfolios was a watershed decision in shifting views about investing in bitcoin, despite its negative views on the crypto asset class in 2013. This move the coin surpassed the price of $13,000.
Other well-known companies such as Square, MicroStrategy and Stone Ridge have also purchased bitcoin assets. These accelerated actions indicate signs of close adoption of the cryptocurrency, as it is expected that the investment policy in bitcoin will continue through its purchase by major companies and institutions during the coming period.
On the other hand, the results of the US presidential election will be positive for cryptocurrency, if President Donald Trump wins, he will be welcomed in the stock market and Bitcoin will continue to grow along with other assets, as for the Democratic challenger Joe Biden to win. Which may be accompanied by a decline in the stock market can also work in favor of Bitcoin based on the expectation of a decline in the value of the dollar.
growth engines
The expansion of the spread of the second wave of the Corona virus in Europe and the United States will negatively affect the financial markets, forcing central banks to respond with more stimulus policies, which will have a positive impact on Bitcoin both in the short and long term.
It is certain that the second stimulus package from the US government will be approved in any case, which will support the stock and cryptocurrency markets as well, as well as negatively affect the US dollar, which will decline significantly.
A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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