- The Bitcoin price is on a direct path to the $10,000 mark and could soon start a new bull run.
- According to some analysts, Wall Street is preparing for a rising BTC price.
The Bitcoin price has been trapped in a narrow price range between $9,600 and $9,900 for the last few days. A few hours ago, however, Bitcoin managed to break through the $9,900 mark, but was rejected at $10,000 in the first attempt. Within the last 24 hours, BTC has nevertheless recorded a 1.38% increase and is trading at $ 9,890.99.
Bitcoin Trader and Blockroot’s founder Josh Rager describes that the short-term price movement of Bitcoin towards the $10,000 mark is positive, but should by no means be seen as a bullish signal. Bitcoin’s current market movements ensure that many positions in the strong resistance have been liquidated. Bitcoin must close above the $9,900 resistance level on the daily chart to confirm a new bullish trend.
Well, this pop was expected but can't say it's bullish when Bitcoin price wicks up at the block above and then drops right back down below current resistance
But BTC price is still holding and retesting $9880 – so bears haven't won yet
It's all a game of liquidations pic.twitter.com/5oDiX2Pv83
— Josh Rager 📈 (@Josh_Rager) June 10, 2020
The experienced trader “Big Chonis Trading” says that Bitcoin is approaching a critical point where BTC will either start a massive rally or a sharp correction. Other analysts, such as “Teddy”, share this opinion and outline that the price development of the next days will set a trend for the next weeks and months.
— Big Chonis Trading😷 (@BigChonis) June 10, 2020
Crypto-Trader “Byzantine General” also pointed out that the trading volume of Bitcoin has dropped from $45 billion to $25 billion yesterday for the past 3 weeks, signaling a declining interest in Bitcoin. In his opinion, Bitcoin must first break through the $10,000 mark to attract new buyers.
— Byzantine General (@ByzGeneral) June 10, 2020
Wall Street wants Bitcoin – Open Interest grows strongly
Two weeks ago, Goldman Sachs executives had strongly advised their clients against investing in Bitcoin. However, recent developments show that the market is increasingly preparing for the entry of large Wall Street companies as well as institutional investors.
According to a new press release, Galaxy Digital, in cooperation with Bakkt, will introduce a custody service for the storage of Bitcoin for institutional investors. Companies with large capital holdings are increasingly demanding appropriate security measures to protect their invested capital.
Furthermore, Bitcoin Open Interest on the Chicago Merchantile Exchange (CME) has increased by more than 310 % since the beginning of the year to date. Open interest is the sum of all open positions of a futures or options contract on an exchange or broker. Open interest in Bitcoin Futures contracts has risen sharply on the CME in recent days. As Charles Edwards, a Digital Asset Manager at Capriole Investments, explained, the CME is on its way to reach the same levels as the market leader for crypto-derivatives, BitMEX.
More evidence for the "institutionalization" of Bitcoin.
CME Bitcoin Futures Open interest is fast approaching BitMEX's XBTUSD – BitMEX is the long held market leader in retail Bitcoin futures trading.
CME Open interest up 310% in 2020 alone. pic.twitter.com/5ScIZBtNr4
— Charles Edwards (@caprioleio) June 9, 2020
A new study by financial giant Fidelity also found that institutional investors’ interest in digital assets such as Bitcoin has risen sharply. Pantera Capital CEO Dan Morehoead also supports this opinion and says that it would be fatal for investors not to have invested in Bitcoin:
Open interest recently surged to a record high. In this new era of Unlimited Quantitative Easing it might be imprudent to **not** have some exposure to #bitcoin.
Despite the positive developments, it remains to be seen in which direction Bitcoin will move.