Chief Analyst at CEX.IO Broker Names Three Key Factors of Bitcoins Current Rise
The head of the data analysis department of CEX.IO Broker Yuri Mazur believes that there is nothing surprising in the growth of bitcoin to $ 13 thousand, since all the necessary conditions for this were formed last month.
According to Yuri Mazur, the uptrend was formed on September 23, when there was a second rebound from the daily resistance level of $ 10 196, followed by rapid growth on 24 September. Such a movement indicated a large volume of demand at this level, which means that market makers were willing to restore the MTC exchange rate to August highs in the medium term..
Another fundamental factor was the news about the investments of large players in the traditional market in the cryptocurrency. In August and September of this year, the American business intelligence company MicroStrategy bought 38,250 BTC. Also in September, the payment system Square bought 4,709 bitcoins, spending $ 50 million or 1% of its capital on this. Now followed by a British company listed on the London Stock Exchange Mode Global Holdings PLC, which bought the cryptocurrency with 10% of its capital. Such large investments had a direct impact on trading volumes..
The analyst notes a striking discrepancy in the dynamics of the prices of bitcoin and ethereum and, as a result, a purely negative price dynamics of the ETH throughout October against the backdrop of a strong growth in MTC.
«This speaks of the growing percentage of bitcoin capitalization in the cryptocurrency market capitalization and the gradual acquisition of the status of the so-called digital gold.», – says Yuri Mazur.
In addition to Ethereum, many altcoins are also experiencing negative price dynamics amid a steady increase in the price of BTC. This may be due to the fact that the market is tired of waiting for the launch of the Ethereum 2.0 network, in which consensus will be achieved through proof of stake (PoS), as indicated by the greatly reduced percentage of active nodes in the Madella testnet. Perhaps the launch of the mainnet will revive the market and help it rise above $ 389, where the Fibonacci retracement level of 61.8 is located, which the ether has already tried to overcome three times unsuccessfully since September 11.
As for the upcoming news that may affect the bitcoin rate, you should pay attention to the election race in the United States and the debate, which should take place on October 23rd. Strengthening the Democrats’ position will mean increased pressure on the dollar, as they are in favor of more financial assistance to the American economy than the presidential administration led by Trump. A weakening dollar will automatically lead to an increase in the BTC / USD rate.
text: Ivan Malichenko, photo: Shutterstock