As Bitcoin (BTC) approaches the $14,000 mark, the “institutional wave” continues and the global financial markets experience uncertainty around US fiscal stimulus, according to a report from OKCoin.
The San Francisco-based crypto exchange notes that Bitcoin price has surged during the past week as “a number of fundamental and on-chain trends align in favor of bulls.” Bitcoin is trading at over $13,800 at the time of writing – which is notably a new year-to-date high and a price “just shy of 2019’s highs at $14,000,” the exchange noted in its recent crypto market report.
During the past week, Bitcoin price surged approximately 14%. The flagship cryptocurrency has consistently been outperforming altcoins (alternative coins besides Bitcoin) this past week. Ethereum (ETH), the second-largest crypto-asset by market cap and adoption, has only managed to gain around 6% during the past seven days, OKCoin confirmed.
Su Zhu, CIO and CEO of Three Arrows Capital, has said that Bitcoin’s “ability to outperform comes as a result of the speed of its rally.”
OKCoin notes in its report that analysts are optimistic after the pseudonymous cryptocurrency “printed its highest weekly candle close since January 2018, shortly after bitcoin peaked in late 2017.” Crypto analysts believe that $14,000 could be “a tough region for bitcoin to cross, though, due to the level’s historical technical significance.”
The report confirmed that $13,700+ is the highest that Bitcoin (BTC) has traded in over a year.
“Institutional adoption continued this week with PayPal rolling out cryptocurrency support. Investors in the space expect these announcements to trigger more corporations and institutions to enter the bitcoin space.”
Raoul Pal, CEO at Real Vision and a former hedge fund manager, pointed out that $14,000 and $20,000 are “the only macro resistances” on Bitcoin’s chart. He also mentioned that $20,000 was “the price at which the cryptocurrency topped in December 2017, and $14,000 was the level at which Bitcoin’s rally peaked in the middle of 2019. $14,000 also marked the December 2017 candle close.”
The report from OKCoin states that analysts are “not expecting $14,000 to break easily.”
The exchange further notes:
“Considering the historical precedent, there is a considerable amount of order book ‘asks’ in the $14,000 region. Bitcoin should close above that level on a weekly or monthly basis to confirm it is acting as support. Then, it may act as a springboard to new highs.”
IntoTheBlock, a blockchain data analytics company, says that despite the recent crypto market rally, BTC’s on-chain trends “remain bearish in the extremely short term.” IntoTheBlock reports that three of its seven main signals for BTC remain “bearish.” The three signals are: “net network growth, concentration, and large transactions.”
Crypto analyst “Light” reveals that the amount of BTC being sent to digital asset exchanges has decreased sharply over the past few days. He believes that this could be an indication that traders are now reluctant to sell their crypto-assets because there could be a potentially strong move to the upside.