Bitcoin Just Broke to $16,500: 3 Reasons Why Analysts Expect More Upside

Nick Chong

Last Updated: June 11, 2024 2:08 pm

2 mins read

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Bitcoin is mounting a strong bounce from the weekend lows of $15,700. Just minutes ago, the leading cryptocurrency broke to $16,500 and passed it for the first time this year. At its local highs, BTC traded for $16,550.

While BTC trades slightly below those highs, it is positioned to move higher as it looks primed to flip $16,000 into support on a daily time frame.

Chart of BTC's price action over the past two weeks from TradingView.com

Bitcoin’s ongoing rally comes as the U.S. dollar has begun to show some weakness again. The U.S. Dollar Index has dropped around 20 basis points from the daily high as there are still some expectations of further monetary stimulus.

Why Bitcoin Could Move Even Higher

Analysts are confident Bitcoin will continue its ascent in the days ahead, citing both technical and fundamental factors. Here are a few:

First and foremost, Bitcoin’s technical case is strong as the consolidation ended above key support levels. John Bollinger, a long-time technical analyst commented on the cryptocurrency.

“Looks like I was wrong about the chance of a correction, all we got was a bit of consolidation and then back to the races. $btcusd Broken setups like this are signs of strength so currently the path of least resistance is higher.”

Secondly, the leading cryptocurrency is continuing to see increasing signs of institutional support.

It was just revealed that Skybridge Capital, the $3.6 billion fund launched by Anthony Scaramucci, is looking to invest in Bitcoin. The founder Scaramuucci has begun to make the cryptocurrency rounds, discussing Bitcoin on his Twitter and in podcasts.

On Friday, Skybridge Capital filed an amendment with the SEC, allowing their $3.6 billion fund to start investing in Bitcoin.

Keep an eye on @Scaramucci 👀 pic.twitter.com/l6fmLosSWk

— Kevin Rooke (@kerooke) November 16, 2020

Lastly, all markets are expected to continue higher on election certainty. After the three past U.S. presidential election, there was a net increase in the inflow of capital to the U.S. equity market, analysts have found.