Bitcoin (BTC) Hits $8,425 USD: Top 5 Causes and Next Support Levels to Key in On
Bitcoin (BTC) Reached $8,425 USD, So Here Are Five Reasons For Summer Surge And Watch You Should Watch Out For
You thought Bitcoin (BTC) was dead? Well, you were wrong because the currency seems to be alive and kicking at the moment. Bitcoin is currently at its highest levels in three months reaching up to $8,425 USD today. This is the highest price that the token has had since mid-May. We have highlighted five reasons for why the price was up lately.
1) Less Pressure From Facebook and Google
At the beginning of the year, Facebook and Google, two of the biggest media giants in the world, banned ads related to crypto. As the bans are not gone, companies like Coinbase are able to advertise again on the platform and Google has converters for the major tokens. This visibility is important for the market and also signals that the tokens are being more accepted now.
2) Institutional Money
When banks and hedge funds decide to really invest in the crypto space, a gold river will start flowing to the market. While Goldman Sachs and JP Morgan have already shown their interest in this market, there is still a lot of untapped potential for institutional money to flow to Bitcoin and this has the potential to drive the prices through the roof.
3) The Bitcoin ETF
The Chicago Board Options Exchange (CBOE) has recently asked for approval to launch a new Bitcoin ETF, which would make casual investors more comfortable for investing in Bitcoin. An approval might be significant for the future of Bitcoin as the price is already rising and it can rise a lot more soon if the ETF is actually launched.
The seasonal aspect is important, as the Bitcoin rises almost all summers. It should not be taken for granted, though, as Bitcoin also had a history of growing in the second quarter and it did not occur this year. Even with caution, seasonality has to be taken into account by the investors.
5) Calls for Regulation
Another issue that has been harming the price of the whole market is that the regulation around Bitcoin is too strict and sometimes unclear. With a clearer regulation, which appears to be coming up soon as the US Chamber of Commerce is asking for it, things will get better. Regulation is the final step to give a boost for Bitcoin that will really make the price go up.
Bitcoin Levels To Watch
It looks like a good time to think about buying Bitcoin, as the price is very near the 200-day Simple Moving Average. The next line of resistance is at $8,901 USD and it looks like Bitcoin might pass it soon, so you want to buy it before it passes. The next line would be at $10,000 USD, but that is farther apart from the prices now and Bitcoin might not get there so soon.
A new BitMEX (and industry) record: 1,000,000 XBT (> $8BN) traded in the last 24 hours!
— BitMEX (@BitMEXdotcom) July 25, 2018
— Zissou™ (@ZeusZissou) July 24, 2018
The best points for buying are when Bitcoin is under $6,800 USD and the best ones for selling is when the token is reaching the lines of resistance in case it does not break them.