The push of over $ 1,000 over the past weekend, which pushed the price of bitcoin above $ 19,300 on Sunday, appears not to be enough to re-hit the all-time high and warrant further gains as this Monday passes.
Experts see the recent rally near an ideal liquidation position called the “upper resistance group” due to several recent rejections of bullish attempts. Just this Sunday, the cryptocurrency made another higher low, a move that generally follows a downward correction. According to analysts, the bearish retracement will take the price to the support level of $ 17,000.
Bitcoin hit a record high just below $ 20,000 just a few days ago and has since failed to extend its bullish move due to sell-offs and profit-taking from investors. His repeated attempt to close above the 20K barrier failed.
However, the medium-term outlook shows Bitcoin within an Rising Channel formation, revealing that the cryptocurrency is still on the run towards $ 20,000, a milestone it will achieve sooner or later.
Bitcoin’s bullish outlook is also based on supporting macroeconomic fundamentals. In its latest research note, JPMorgan & Chase stated that the cryptocurrency’s market capitalization could grow by another $ 600 billion, primarily after the $ 100 million investment from insurance company MassMutual.
“MassMutual’s Bitcoin purchases represent another milestone in the adoption of Bitcoin by institutional investors. You can see the potential demand that could emerge in the coming years as other insurance companies and pension funds follow suit. MassMutual, “JP Morgan stated.
More institutions have started trading their cash reserves for Bitcoin due to their fears of the devaluation of the US dollar, led by the Federal Reserve’s commitment to target inflation of more than 2 percent and the prospects for the second bill. of coronavirus relief.