Bitcoin Remains Bullish Above $46k amidst Regulatory Advances, But Funds Yet to See any Inflows
While Bitcoin’s 14-day Relative Strength Index (RSI) shows its overbought, it has formed a high low and breached its 200-day moving average. And while BTC investment vehicles had the fifth outflow in a row, Ethereum and other altcoins continue to see inflows.
Bitcoin continues to trade around $46,000, an 11-week high, experiencing a strong bullish moment ever since falling to $29,300 on July 20.
Bitcoin is “eyeing a major breakout above $40,000, bolstered by the proposed crypto amendment in the US infrastructure bill,” said Joe DiPasquale, CEO at BitBull Capital.
A crypto-centric amendment has been the biggest thing going on, and it's front-page news of, like, real newspapers and websites. The Senate is taking this seriously, and now they're going to KEEP taking it seriously — and not in an overly negative way. pic.twitter.com/D1Gbs2McAl
— Sam Trabucco (@AlamedaTrabucco) August 9, 2021
The controversial infrastructure bill that overreaches its definition of “broker” to tax crypto has shown the regulators, and Wall Street alike just how much influence and fight the crypto community has.
“This move should be telling us that the worst is behind us for now,” said Matt Maley, chief market strategist for Miller Tabak + Co.
According to him, unless Bitcoin reverses the move immediately, we could quickly advance toward $50k, where some resistance could be found. Still, “the action is very bullish on a technical basis,” he said.
Looks like we'll close above the 200 DMA. That's pretty🐂ish. pic.twitter.com/Nlpis1n4XG
— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) August 9, 2021
While Bitcoin’s 14-day Relative Strength Index (RSI) shows its overbought, it has formed a high low and breached its 200-day moving average amidst this rally. And this is where we could find resistance though sustaining above the next key threshold $50k would be bullish for the crypto asset.
“Bitcoin has found its groove once more over the last week,” wrote Craig Erlam, a senior market analyst at OANDA Europe. “Now very much back into bullish territory, the question is how far it can go this time around.”
Playing out nicely….. https://t.co/a0avfmSXAi
— SpartanBlack (@SpartanBlack_1) August 10, 2021
According to Bloomberg’s Mike McGlone, the fact that Bitcoin corrected more than 50% after its all-time high at near $65,000 and forming a solid basis of support within a potentially longer-term bull market puts the odds in the leading cryptocurrencies' favor.
“A question is whether supply-and-demand conditions have deteriorated since the start of 2021 and compared with Bitcoin's past,” McGlone wrote. “Our take is that underpinnings are bullish in a maturing environment.”
In retrospect the market will look at the May-Jun 2021 China crackdown as one of the best things to ever happen to the crypto industry. https://t.co/cDLD4H06e4
— SpartanBlack (@SpartanBlack_1) August 10, 2021
While Bitcoin (BTC), along with the rest of the market, especially Ether (ETH), is enjoying gains, investment products and funds continue to register outflows. ETH -6.15% Ethereum / USD ETHUSD $ 2,913.46
-$179.18-6.15% Volume 25.35 b Change -$179.18 Open $2,913.46 Circulating 117.66 m Market Cap 342.81 b 13 h Cryptocurrency Market Tanks on the Same Old China Ban News, But Investors Who Sell Here Will End Up “Bummed” 14 h JPMorgan says Institutional Investors Have Shown A 'Strong Preference' for Ethereum Over Bitcoin Since August 1 d 1Inch Moves to Arbitrum For Faster Throughput And Lower Gas Fees
Bitcoin products saw outflows for the fifth consecutive week as investors remain cautious, according to the weekly report from digital asset manager CoinShares. Outflows from BTC totaled $33 million in the weeks ending August 6, compared to $19.7 mln the previous week. Year-to-date inflows, however, remain at $4.2 billion.
2021 gave us a comfy rounded top and a cozy rounded bottom. Now the industry is galvanized around a bill. Bitcoin is on the global stage. No more comfy cozy, hard hats on, upside volatility LFG. #Bitcoin
— Kyle Davies (@kyled116) August 9, 2021
Total crypto outflows for the week had been about $26 mln but much less than in May and June.
“There's all this focus on crypto because with all the new financial products and innovative solutions, governments, which are here to protect investors, are going to wonder whether this is a good idea and so, they're going to look more into these,” said Matthijs de Vries, CTO at AllianceBlock.
Ethereum saw minor inflows of $2.8 mln, now representing 26% of investment products compared to just 11% at the beginning of 2021. Other altcoins saw minor inflows as well, such as XRP, Bitcoin Cash (BCH), Cardano (ADA), and multi-asset recorded inflows of $1.1 mln, $1 mln, $0.8 mln, and $0.8 mln, respectively.