Black_background_logo_BitcoinWorld-removebg-preview
Bitcoin News Blockchain News

Bitcoin Breaks Key Resistance, Blackrock’s Entry Sparks Bullish Momentum

Bitcoin (BTC) has surged past crucial resistance levels, breaching $27,000 and, subsequently, $28,000. The cryptocurrency’s rally is attributed to Blackrock’s planned entry into the crypto industry with a spot Bitcoin exchange-traded fund (ETF). This move is a positive development, attracting institutional investors and signalling validation for the crypto market.

Bitcoin’s Breakout and Blackrock’s ETF :

Bitcoin’s price has successfully pushed through the $27,000 resistance, marking a significant breakthrough following last week’s correction below $25,000. The rally continued as the cryptocurrency surpassed the $28,000 resistance. Prominent analysts, including Michaël van de Poppe, have linked the sudden bullish sentiment to Blackrock’s filing of an application for a spot Bitcoin ETF with the SEC. This announcement has generated optimism among institutional investors interested in the crypto market.

Fidelity Investments and EDX Markets :

In another development, Fidelity Investments has collaborated with Citadel Securities to launch a cryptocurrency exchange called EDX Markets. This exchange aims to cater to brokers and investors seeking exposure to the crypto market while avoiding the challenges that led to FTX’s closure in November. EDX Markets quietly commenced transactions recently, demonstrating Wall Street institutions’ ongoing interest in cryptocurrencies despite regulatory pressures and market slowdowns.

Bitcoin’s Potential Breakout and MACD Signal :

Bitcoin’s positive reaction to these news events confirms the breakout discussed in previous analyses. Long positions triggered above the bullish pennant pattern or the 50-day Exponential Moving Average (EMA) around $27,000 have turned profitable as the price closes in on $29,000. The Moving Average Convergence Divergence (MACD) indicator has also validated a buy signal on the daily chart, suggesting a potential shift in market sentiment.

Future Outlook and Cautionary Approach :

While Bitcoin’s rally signals a possible end to the long-lasting downtrend, it is advisable to wait for confirmation of support at $28,000 or a breakout above $29,000 before initiating new long positions. This cautious approach helps mitigate the risk of sudden pullbacks that could lead to losses. In case support at $28,000 is breached, investors should anticipate a potential drop to the next support level at $27,000.

Bitcoin’s recent breakout, fueled by Blackrock’s ETF plans and institutional interest, suggests a shift toward a bullish era. Confirmation of support levels and careful trading decisions are advised.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.