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Bitcoin fluctuates and is poised to counterattack

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BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
BTCUSD broke through $50000 for the first time in August. BTCUSD hit the peak of $64000 in mid-April and then fell along with other cryptocurrencies. It decreased to the lowest of $29608 in July and then recovered some losses. It has soared by 70%. I believe that the price of Bitcoin will continue to rise. The following 4 reasons are for your reference only.

Trading volume of Bitcoin futures climbed to $1.73 trillion in August

According to The Block data, the trading volume of the main Bitcoin futures market in August reached $1.73 trillion, an increase of 17% from $1.47 trillion in July. The peak of the futures market was recorded in May, when the trading volume reached $2.56 trillion. Binance trading platform once again occupied the largest market share of Bitcoin futures in August.
I believe that the sharp rise in Bitcoin transaction volume indicates that the market is optimistic about the prospect of the cryptocurrency market. It is expected that BTCUSD will jump further as more and more buyers begin to invest in Bitcoin .

55% of the world’s top 100 banks invest directly or indirectly in cryptocurrencies

According to a research by Blockdata, a blockchain market intelligence agency, 55 of the top 100 banks ranked by asset management size ( AUM ) are investors in major crypto and blockchain technology companies and projects. Such participation includes direct and indirect investment in crypto and decentralized ledger technology companies by the bank itself or through its subsidiaries.

Blockdata’s research lists Barclays, Citigroup , and Goldman Sachs as the most active supporters of crypto assets and blockchain companies, and JPMorgan and BNP Paribas are listed as a serial investor in this emerging field.

I think that the top 55% of banks in the scale of asset management invest directly or indirectly in the crypto field, which means that they represent a huge amount of funds and the participation of high-net-worth institutional clients. With the outstanding performance of the crypto market, the layout trend of large investment banks will become more obvious, which is a major positive for the crypto market.

The total scale of crypto fund asset management reaches the highest since mid-May

According to a report by CoinShares, despite the outflow of funds for the fifth consecutive week, the total asset management scale of crypto-asset funds has reached the highest since mid-May, reaching $50 billion.

Although BTCUSD has increased sharply in the past few weeks, the outflow of funds from Bitcoin funds last week totaled $33 million. At the same time, the total outflow of Ethereum funds was $2.8 million. The market share of Ethereum funds is rising rapidly, currently accounting for 26% of all digital investment products, compared to only 11% at the beginning of 2021.

I believe that the total scale of asset management of crypto assets funds has reached the highest since mid-May, which indicates that the crypto market is becoming more and more sought after by investors. Although there are still outflows of funds from Bitcoin and Ethereum funds, the rapid increase in the market share of Ethereum funds and the increase in the number of fund investment products are both positive signs.

Technically, BTCUSD fluctuates and is poised to counterattack

From a technical point of view, BTCUSD continued climbing and maintained the upward momentum, suggesting investors are optimistic about the market trend. BTCUSD will continue jumping to test the resistance at 55000 if reverses but is steady above the support at 43000-47000, and it will rise further with potential resistance at 59800 if it breaks through 55000. On the other hand, it will stop the increase with potential support at 37000 if breaks through 43000. In terms of technical indicators, the overall moving average showed bullish upward divergence, and the indicator of RSI was running at a high level, suggesting that Bitcoin has strong momentum to rise further.

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