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Breaking News: SOL Strategies: The First Solana Treasury Company Listed On Nasdaq
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Breaking News: SOL Strategies: The First Solana Treasury Company Listed On Nasdaq

4 Reasons Why Bitcoin Remains Bullish, What Might Bring New ATHs

Reynaldo Marquez
Reynaldo Marquez
1 year ago
2 mins read
Bitcoin BTC BTCUSD

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Bitcoin has seen some downside action in the past 24 hours, as it was rejected north of $50,000. The first cryptocurrency by market cap trades at $49,207 with a 2.1% loss in the daily chart.

Bitcoin BTC BTCUSD
BTC moving sideways after rejection at $50K in the daily chart. Source: BTCUSD Tradingview

Investors and experts are keeping a close eye on current levels. As pseudonyms trader CryptoDonAlt said, “this is where the market decides” if the trend will be to the up or downside.

CryptoDontAlt and other traders believe this to be Bitcoin’s last major resistance. Therefore, a break and hold above $50,000 could push the price towards previous highs.

Bitcoin BTC BTCUSD
Source: CryptoDontAlt via Twitter

 

The U.S. Federal Reserve and other major central banks around the world have adopted monetary policies to mitigate the effects of the lockdowns and the Covid-19 pandemic. Investors were expecting a change in these policies for September.

However, as QCP Capital said, the FED might move new decisions to December 2021. Thus, Bitcoin and risk assets have more room for a rally.

On September 14, the U.S. will reveal new data on their Consumer Price Index (CPI), a metric associated with inflation. This event is usually preceded and followed by volatility and will be relevant for the market to decide its trend.

In addition, Bitcoin bulls managed to defeat a strong assault from the bears accompanied by high levels of FUD news. This included attacks to crypto exchanges, the DeFi sector, and the industry as a whole with the infrastructure bills.

QCP Capital believes that there will be less negative news in the medium term. Thus, Bitcoin’s price action will be less affected by news events:

Headline regulatory risk exhausted in the near-term. We expect any significant crypto-related regulatory decisions to come only towards Q1 2022, particularly anything from the Senate Banking Committee & the SEC.

Bitcoin Retail Investors Make A Comeback, Why This Time Is Different

QCP Capital also recorded an increase in demand with no important changes in the derivatives sector. As the image below shows, the Bitcoin rally to all-time highs in Q1 2021 was followed by a spike in funding rates for futures perpetual contracts.

Bitcoin BTC BTCUSD
Source: Skew via QCP Capital

In that way, BTC’s price action was dependent on speculators using leverage. This caused the rally to be unsustainable. At its current levels, Bitcoin-based derivatives and funding rates displayed no signs of a similar investors’ behavior:

In spite of today’s mini funding spike on the rally (up to 20% annualized) funding rates & future premiums in both BTC & ETH continue to be relatively low & muted. This means most of the rally has been driven by demand in physical spot rather than from leveraged speculators.

This could change as Bitcoin moves into its previous highs, but it’s a positive indicator as of now. QCP Capital expects more consolidation at current levels and believes the next month, especially towards the end of the year, could see less appreciation than in 2020.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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