Jul 23, 2020 at 11:55 UTC
(BEST-BACKGROUNDS/Shutterstock) 3 Reasons Bitcoin’s Price Could Soon Rise to $10K
Bitcoin jumped above $9,500 on Wednesday, ending a four-week-long low-volatility squeeze.
Now the cryptocurrency looks set to climb toward the psychological hurdle of $10,000, as suggested by several factors.1.Volatility returns Bitcoin’s high of $9,551 on Wednesday was its highest level since June 24, according to CoinDesk’s Bitcoin Price Index.The gain has confirmed a Bollinger band breakout on the daily chart and opened the doors for a move of $400 or more on the higher side, as noted by Adrian Zdunczyk, CEO of trading community The BIRB Nest in a blog post.Daily chart Source: TradingView Bollinger bands are volatility indicators placed two standard deviations above and below the 20-day moving average.They had recently narrowed to levels last seen in November 2018 as the cryptocurrency traded in the very restricted range of $9,000–$9,400.A big move often follows a period of very low volatility.2.
Institutional interest rising CME Bitcoin futures open interest Source: Skew Open interest or open positions in bitcoin futures listed on the Chicago Mercantile Exchange (CME) – considered synonymous with institutional interest – jumped 15% to a one-month high of $452 million on Wednesday.The metric has risen by 24% over the past three days alongside bitcoin’s uptick from $9,120 to $9,550, according to data source Skew.Global open interest (as gauged by data from 12 major crypto derivatives exchanges) has risen above $4 billion for the first time since early March.A price rally is said to have legs if it is accompanied by an uptick in open interest.3.‘Risk-on’ markets The “risk-on” mood in the traditional markets further supports stronger gains for the leading cryptocurrency.
Global stock markets are trading at five-month highs while the U.S.dollar, a safe haven in times of crisis, is languishing near March lows, according to Investing.com.The EU’s fiscal stimulus deal and market expectations of an additional U.S.coronavirus stimulus package are pushing stocks higher.Bitcoin has recently developed a stronger positive correlation with the equity markets.It’s worth noting that escalating China-U.S.tensions pose a risk to the equity market rally and possibly bitcoin prices.
Disclosure: The author holds no cryptocurrency at the time of writing .
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