Relevance up to 08:00 2021-10-27 UTC–4
While bitcoin continues to recover after the recent fall provoked by local profit-taking by holders, investors continue to break all records in terms of interest in the coin. The main culprit of such a strong demand for the asset was the futures market and ETF funds. In addition, it became known that the MasterCard payment system is expanding interaction with cryptocurrencies, and Tesla can again accept digital assets as payment.
Bitcoin is approaching the next stage of a bullish rally, which is supported by strong investments from institutional investors. The market is getting closer to the historical maximum of interest in BTC, thanks to which it sets a record for the inflow of investments in products based on the first cryptocurrency in one week. In the period from October 16 to 22, the inflow of investments in crypto-assets and related areas amounted to $1.47 billion.
To assess the scale of investments, it is worth noting that the total amount of investments since the beginning of 2021 is about $8 billion. The previous record was set back in February when investments reached $670 million. The main source of BTC financing was ETF funds, thanks to which about $1.24 billion was raised. Other bitcoin-based funds have raised another $138 million, which is nothing compared to the performance of futures institutions. It is worth noting that the outflow of investments from ETH-based products has been maintained for the third week
Thanks to such powerful investments, the cryptocurrency successfully gained a foothold above $63k, and the outflow of coins began to be recorded on the exchanges again, which indicates the beginning of the accumulation period.
At the same time, on-chain activity remains at a high level, as evidenced by the metric of the number of unique addresses, which remains within 900,000. In addition, the total transaction volumes remain at the level of the period when the historical maximum was set, which indicates the preservation of a high level of player activity.
Another important announcement appeared in Tesla’s reporting to the SEC, where it is said that the company considers digital assets as a means of investment and a liquid alternative to cash. Based on this, we can conclude that the automaker is preparing to resume payment for its services in cryptocurrencies, which will have a positive impact on the quotes and the marketing component of BTC. However, there were no direct statements from Elon Musk, despite the fact that more than 50% of mining has become environmentally friendly.
Meanwhile, bitcoin has confidently recovered above the $63k zone and is approaching the $63.5k mark, where the sales zone passes. Despite the formation of a bullish candle on the daily chart and a confident movement above the supertrend line, the technical indicators of the coin continue to fluctuate.
The MACD indicator formed a bearish intersection and began to decline, but again pushed off near the zero mark and may begin an upward movement. Similar fluctuations are also demonstrated by the stochastic oscillator, which completed a bearish intersection, but also pushed off and began to grow, after which it decreases again and is close to another downward spurt. At the same time, the relative strength index moves flat, which indicates a consistently high interest in purchases.
In general, the situation is conducive to a slowdown in the bullish trend and a gradual decline in the main indicators. Despite attempts to develop an upward momentum, there is no strong buyer in the market, and therefore the volumes of bears continue to put pressure on the price.
In the near future, the price will fluctuate with a shift to the lower limit of the current range, but the fall will worsen when it goes beyond $62.5-$63.3k. Then we should expect a rebound in the area of $59.7k-$60.5k, but if the quotes continue to fall, the $56.6k line may become the key reversal zone.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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