The whales are helping the price rise steadily, creating a cushion in the event of a pullback. There may be a reversal soon, but investors recommend not waiting for a drop when the price is fully bullish.

The price of Bitcoin has risen steadily to reach USD 55,000, dragging the rest of the cryptocurrencies.

BTC is trading at around USD 53,780, correcting slightly after hitting a local high of USD 55,555. Its price has accumulated a 7.13% profit in the last 24 hours, while it has risen by 27.65% in the past week.

These Factors Catalyzed the Rise in the Price

A significant cascading liquidation of short orders earlier in the month generated the force to start the momentum. The total settled was USD 47 billion, equivalent to 1,200 BTC.

To execute those liquidations, also known as short positions, investors borrow BTC and sell it immediately. They then try to buy at a lower price to profit from the difference between entry and exit prices.

Conversely, when the price is unfavorable, those trying to profit from a possible drop must quickly buy BTC to replace the loan. That adds fuel to the bullish fire, as happened on October 1^st and usually happens.

While that trigger is a good start, it is not a solid base for a sustained climb.

However, the whales are currently making the increase steady, which contributes to creating a cushion if a drop in the price occurs.

South Korean analyst Ki Young Ju said that someone bought USD 1.6 billion worth of BTC through market orders in just 5 minutes. In other words, strong hands rather than cascading sell-offs are supporting the price rally.

Analysis of the Price of Bitcoin after It Reaches USD 55,000

The daily chart reveals the great upward strength of the last three days, with a price that hardly needed to go back. After that, a new momentum allowed it to reach USD 55,000.

The trend is bullish, so the 8 EMA and 18-day SMA move in that direction. Those metrics are currently quite far from the price, indicating that the short-term momentum is quite developed. Besides, there may soon be a pullback in the value of the pioneering cryptocurrency.

However, investors should not wait for a drop when the price is fully bullish. Experts recommend not waiting for a pullback to occur since they could lose their money.

After exceeding USD 55,000, the runway for the price of Bitcoin is clear USD 56,578. For that reason, that resistance is likely before the beginning of a correction.

According to the weekly chart, the outlook is more bullish after breaking through resistance at USD 52,663. That suggests that the runway will remain clear to USD 58,968 for the price of the cryptocurrency.

Amid the current development of long-term momentum, it is not unreasonable that an all-time high far from the current one will occur. After all, the cryptocurrency created by Satoshi Nakamoto has proven to be capable of rebounding from its worst drops handsomely.

By Alexander Salazar

The ban on Bitcoin in China, its adoption as legal tender in El Salvador, and the Evergrande crisis contributed to its drop in price. Although the value of the cryptocurrency was not very high, the institutional products linked to it saw some gains.

The price of Bitcoin suffered losses during September, but billions of US dollars returned to the cryptocurrency market at the end of the month. Although last month was negative for the cryptocurrency, the metrics express that a positive trend started in October.

In 2020, the value of Bitcoin closed September at USD 10,750 while skyrocketing by approximately 25% in October standing at USD 13,450.

September of this year was pessimistic regarding the price, but many crypto advocates called for waking them up. On September 26^th, Civic co-founder Vinny Lingham said it looked like September 2017 and asked to recall what happened next.

On October 1^st, the price of Bitcoin increased from USD 43,500 to USD 48,500 in 24 hours, representing an increase of 11.49%.

Bitcoin went through months of negative returns before July and August, and prices fell again. Analysts attributed the downward trend to China banning cryptocurrencies and exchanges.

The first cryptocurrency also suffered losses when El Salvador adopted it as legal tender. Furthermore, its value suffered a sharp drop due to the Evergrande real estate crisis in recent weeks.

September Was Slow, but Institutional Products Linked to Bitcoin Gained Advantage

All of those negative market trends occurred after Bitcoin hit a high of USD 52,000 in early September. Although the cryptocurrency markets were bullish, the prices in September were not that high. A recent report from Cryptocompare indicates that institutional products linked to Bitcoin saw gains.

The data provider showed that Bitcoin-linked products saw the highest inflow of any asset on the market. They averaged USD 31.2 million per week, CryptoCompare noted. The document added that there could be bullish behavior by the end of 2021.

The value of Bitcoin approached the USD 50,000 zone on October 1^st. The cryptocurrency has resistance at that level, especially when it reaches USD 53,000.

The Value of Bitcoin Rises after the Crash of Facebook

The market capitalization of Bitcoin (BTC) exceeded that of Facebook after the latter’s share price fell by almost 5%. The cause of this was a worldwide blackout of its servers that left billions of users without access. In addition, the value of the cryptocurrency went above the barrier of USD 49,000.

Right now, Facebook’s market capitalization is USD 919.78 billion while Bitcoin’s is USD 922 billion, according to data from CoinMarketCap.

In the last few hours, the price of Bitcoin rose by 2.2%, while Facebook saw a total reduction of 4.89%. Facebook suffered losses of around USD 280 billion as a result of its servers going down.

Bitcoin has proved capable of resuming and exceeding its all-time highs after dropping sharply. For that reason, many analysts even predict the pioneering cryptocurrency will reach USD 1,000,000 by the end of 2021 or during 2020.

By Alexander Salazar

After a careful internal review, cryptocurrency exchange KuCoin concluded that exiting China is the only viable option. Many governments agree the hostility of the country to cryptocurrencies seems related to the launch of the digital yuan.

The KuCoin exchange recently announced that its users residing in China would have to withdraw their funds and close their accounts by the end of the year. The direct reason for that was the latest regulatory series of decisions by the People’s Bank of China on cryptocurrencies.

Regulatory pressures from Chinese authorities led the exchange to ask its users to close their current positions. In addition, investors will need to withdraw the remaining funds from the platform before December 31^st of this year.

At the end of September, the Central Bank of China decreed a ban on cryptocurrencies. The financial institution prohibited all organizations operating in the territory from trading with any entity associated with the cryptocurrency industry.

KuCoin said that it had initiated an internal review to determine the most appropriate action to take. After careful study, the company concluded that the only viable option was to get out of China.

After Huobi, that is the second exchange to announce similar plans after the latest bans by China.

Huobi said that it would stop accepting new users residing in China. The company’s mining pool then moved more than USD 4 billion worth of Bitcoin to overseas wallets. That also seemed a direct consequence of Chinese regulations.

The Chinese Regulatory Measures Have Affected the Bitcoin Market

China’s most recent regulatory measures have impacted the overall cryptocurrency market. In addition, the financial crisis due to the possible default of the real estate giant Evergrande seems to have affected the price of Bitcoin.

Recent events have also affected Ethereum, as Ether’s mining pool, Sparkpool, had to close. The pressure from regulators forced it to end its operations and leave the Chinese territory.

The Digital Yuan Appears to Be the Reason for the Chinese Regulations

Many governments believe that China’s hostility to cryptocurrencies seems to be due to the launch of its digital currency, the digital yuan.

Carnegie Mellon University economics professor Ariel Zetlin stressed that China wants to promote the digital yuan. He stated that they also seek to eliminate their competitors by banning cryptocurrency activities and exchanges.

The president of the CrossTower cryptocurrency exchange Kristin Boggiano said that China seems to be choosing control over innovation. Furthermore, she explained that their actions indicate that they view cryptocurrencies as a threat to the digital yuan.

That shows the suspicions that have led China to tighten its regulations on decentralized cryptocurrencies. That contrasts with other large economies, where the discussion continues revolving around the safety and reliability of those assets.

Hence, that strategy could be an effort to stop the growth of private cryptocurrencies. In that way, they would be looking to encourage users in China to adopt the digital yuan.

By Alexander Salazar

The price of the pioneering cryptocurrency could be starting fresh momentum due to a shortage of coins in circulation. The current correction will not prevent the pullback from bottoming out to make way for a new drive.

At the beginning of October, the price of Bitcoin increased significantly but is now retreating slightly. Analyzing the cryptocurrency allows knowing where its value is going in the second week of the month.

Bitcoin is trading at around USD 49,470 and has accumulated a 3.5% profit in the last 24 hours, according to CoinGecko.

It seems that everything will be fine as the fundamentals become increasingly optimistic as the price rises.

The rise in the hash rate is one of the most relevant fundamentals when it comes to the price of Bitcoin. Although many Chinese miners left the Asian country five months ago, that metric is about to reach a new all-time high.

That shows that the network can be strong even though restrictions hamper mining activity in China. The Asian nation is one of those with the highest hash rate.

The Divergence Between the Price and Liquidity of BTC Announces Momentum

The supply has continually declined as holders continue to accumulate with their sights in the long term.

An analysis by Will Clemente indicates that the divergence between the price and liquidity of BTC announced the beginning of momentum.

The major correction started in April after the price of BTC hit an all-time high of almost USD  65,000. After large coin deposits by exchange users, the price fell to USD  28,130.

The metrics indicated that the shortage of coins in circulation was starting to increase even though the price did not. However, a strong supply shock caused a rapid rise in value that was not long in coming.

After another divergence that occurred recently, the price is starting to react to the shortage of coins.

An Analysis Reveals that There Could Be a Bullish Trend in the Short Term

The short-term trend is clearly bullish, as the 8-day EMA and 18-day SMA crossed to the upside. The moving average that follows the higher trend (200-day SMA) also turned bullish.

On October 1^st, a resistance at USD  48,121 hampered the price of Bitcoin, and a correction is now in the works. However, the pullback will most likely bottom out this week, ushering in new momentum.

The next resistance for the price of Bitcoin is at USD 52,663, but that hurdle may not be relevant.

The Larger Trend Should Lead the Price of BTC Higher

The weekly chart reveals that the gains for the first week of October signal the start of stronger momentum. That could quickly push the price of Bitcoin towards the resistance left by the all-time high.

The gains in the last two months resulted from the resumption of the trend generated by the considerable increase throughout 2020 and early 2021. For that reason, thinking about new highs far away from the current point does not seem far-fetched at all.

By Alexander Salazar

Robert Kiyosaki said that China is taking regulatory measures against cryptocurrencies to pave the way for the digital yuan. Trump expressed that he wanted the US dollar to be the only currency in the world when Bitcoin was worth USD 33,400.

Former US President Donald Trump recently gave his opinion on the growing popularity of cryptocurrencies. He warned that American citizens should beware of them as they have the dollar, which he allegedly admired.

Trump added that he did not want other currencies to harm or degrade the US dollar in any way. In this manner, the former US president confirmed that he maintains his position against cryptocurrencies.

The businessman also stated that China is supporting its economy on the US dollar, although it is not seeking to support it. He argued that the Asian country should continue like this unless the United States did something wrong.

The former president alleged that the North American country is losing credibility, which could affect it economically. The former president referred to the immigration situation of the United States on the border with Mexico and the withdrawal of troops from Afghanistan.

According to Trump, a monetary system based on the US dollar cannot lose its strength, as that would affect its credibility. For that reason, the former president recommended being very careful with that.

China’s Ban on Bitcoin Represents an Opportunity for the United States

Robert Kiyosaki, the renowned author of Rich Dad, Poor Dad, expressed that China is taking regulatory action against cryptocurrencies. In doing so, they seek to pave the way for the digital yuan, which the People’s Bank of China supports.

Some analysts consider the move against cryptocurrencies by China to be good news for the United States.

Congressman Patrick McHenry said that China’s ban represents an opportunity for US leadership in cryptocurrencies.

Donald Trump’s Position against Cryptocurrencies

Donald Trump has never liked Bitcoin and other cryptocurrencies, which he has expressed on several occasions. In 2019, the then president of the United States said that he was not a fan of those assets because he did not believe they were real money. Furthermore, he stated that their value is very volatile and based on nothing but thin air.

The former head of state even went so far as to express that Bitcoin had the appearance of a scam in June. Likewise, Trump alleged that unregulated crypto assets facilitate illegal activities such as drug trafficking.

Trump expressed that he wanted the US dollar to be the only currency in the world. However, at the time, the price of Bitcoin was USD 33,400. If the entrepreneur had invested in it, he would have earned a significant profit in just a few months.

Bitcoin is trading at around USD 54,486 and has accumulated a 30.9% gain in the last week, according to CoinGecko. After just five months, its price has increased by 63%.

The relevance of Bitcoin has led a growing number of personalities to set their sights on it. Amid the ban on cryptocurrencies in China, Trump still maintains that they are not money and contribute to criminal activities.

By Alexander Salazar