Bitcoin Price Analysis: BTC Climbs Above 20-day SMA
Daily Bitcoin BTC Price Forecast
- The Bitcoin price must now take down 50-day SMA.
- Taking down 50-day SMA will flip parabolic SAR from negative to positive.
Between June 22 and June 28, the Bitcoin price has been hovering between $31,670 to $34,650. Looking at the daily chart, you can see that BTC attempted to break above the 20-day SMA multiple times but has been blocked on the upside by both the 20-day SMA and the $35,000 resistance.
Bitcoin Price Climbs Above Crucial Level
Between July 1 and July 6, the Bitcoin price has been trending between the $33,600 support and the $35,000 resistance. On July 4, BTC managed to climb above the 20-day SMA but faced immediate correction. The buyers took back control and have managed to break above 20-day SMA again today. It will be interesting to see if the bulls can maintain their advantage.
Image: BTC/USD daily
Bitcoin price faces immediate resistance at the 50-day SMA ($35,800). As per the IOMAP, almost 900,000 addresses had previously purchased almost 430,000 BTC at this level.
~4,000 German Institutions Can Now Allocate 20% Balance Sheet To Crypto
A new law in Germany allows almost 4,000 institutional funds accounting for about €2 trillion in assets under management (AUM) to invest 20% of their portfolios in Bitcoin and other cryptocurrencies.
The Fund Location Act (Fondsstandortgesetz) law went into effect recently after the German federal parliament, the Bundestag, cleared it for legislation on April 22. The law could potentially lead to an influx of institutional crypto investors into Germany.
The country enjoys one of the strongest economies in the eurozone. The law targets the country’s new and existing special funds or Spezialfonds.
An excerpt from the law reads:
“All crypto values can be acquired by open-ended special funds with fixed investment conditions, up to 20% of the fund’s NAV. From an investment tax perspective, crypto assets will also be included in the investment catalogue of special investment funds with a corresponding 20% limit. Furthermore, open-ended special funds with fixed investment conditions may also invest – without any quantitative limit – in infrastructure project companies."
A report by BVI Investments estimated that $2.23 trillion was invested in open special funds. The amount excludes special real estate funds as of December 2020. In this case, an allocation of 20% in cryptocurrencies for all the special funds would equate to over €376 billion.
Bitcoin Price Is Expected To Reach These Levels
Having reclaimed the 20-day SMA, the Bitcoin price needs to take down the 50-day SMA. If they manage to do so, BTC should reach the $38,000 resistance.