Bitcoin Price Prediction: 20-day SMA Prevents BTC’s Upward Growth
Daily Bitcoin BTC Technical Analysis
- Bitcoin Price Is Sandwiched Between Two Strong Levels.
- BTC flashes multiple buy signals in the 4-hour time frame.
Bitcoin price rose from $30,300 to $34,000 over the last two days, as the buyers came back with a vengeance. As things stand, the price is stuck below the 20-day SMA. Let’s take a closer look.
Bitcoin Price Stopped In Its Path
As things stand, the Bitcoin price couldn’t get on further with its bullish movement. The buyers have tried to flip the 20-day SMA from resistance to support but have failed to do so. Even if the buyers overcome this, they face another strong opposition at the $35,700 line.
Image: BTC/USD daily
Speaking of the $35,700 line, previously 495,000 addresses had bought 285,000 BTC at this level. If the buyers overcome this, they should have a clear path to take Bitcoin price above the $36,000 psychological level.
The 4-hour Bitcoin price chart is still extremely bullish. At a glance, you can see four different positive signals for BTC.
Image: BTC/USD 4-hour
- Bitcoin bulls have remained in control for five straight days.
- The parabolic SAR has been reversed from bearish to bullish.
- The MACD shows increasing bullish market momentum.
- The 20-bar, 50-bar, and 200-bar SMAs have all flipped from resistance to support.
So, this could mean that the Bitcoin price may make another attempt at the $35,700 resistance line and take over.
Ari Paul: Institutions Piling Into Bitcoin To Stay Rich
Ari Paul, the co-founder of cryptocurrency investment firm BlockTower Capital, recently said that institutional investors are increasingly buying Bitcoin to protect their wealth. In a recent SALT Talks interview with John Darsie, Paul said that large investors are taking a defensive approach when putting their money into Bitcoin.
According to Paul, there is an interesting shift going on in the mindsets of billionaires as they’re now “thinking defensively.” He added that they are passively allocating at least 10% of their net worth in Bitcoin “just to keep up, just in case.” In Paul’s opinion, these investors are not looking to get rich with BTC allocation but to stay rich.
[Billionares] are now thinking defensively. They are thinking enough of their billionaire buddies have 10% of their net worth in Bitcoin. If they don’t, they are thinking ‘Man, if Bitcoin does another 20X, I’m not invited to the parties anymore. I’m not in that rich club’, wherever they are in the hierarchy. So now they are thinking, ‘I need a passive allocation. I need 10% of my net worth in this just to keep up, just in case.’ It’s not about getting rich, it’s now about staying rich.
Paul added that the new category of investors would contribute to a long-term reduction in Bitcoin’s volatility.
Those are very strong hand buyers. These are people who are looking to buy more on dips. These are people who are not going to sell with a change in trend. The volatility is not going away. You can’t have raging bull runs that take you 10x higher without volatility. The volatility will gradually fall as this institutionalizes [with] broader market participation.
Q9 Capital And Hong Kong Finance Giants Expand Into Bitcoin Offerings
Henyep Group, a Hong Kong-based financial services conglomerate, expands its traditional private wealth offerings into the digital asset space. The group has recently formed a new subsidiary called Q9 Capital, which has officially launched crypto prime brokerage-like services. The subsidiary targets high-net-worth individuals and family offices.
In a press statement, the company said that it aims to meet the growing demand for digital assets from these types of institutionalized capital sources. It plans to run a full crypto over-the-counter (OTC) desk to facilitate clients' trades and by offering crypto savings products and custodial services.
Aaron Chiu, the co-founder of Q9 and executive director of Henyep Group, said:
We view it [crypto space] as once in a life-time opportunity here because it's very rare where you have a new asset class that is spot on. We see tremendous value in digital assets, which have become a truly global asset class – like gold did 40 years ago.
Chiu said the goal is to apply Henyep's dedicated client servicing experience (in traditional wealth management) into the crypto space. He added that while Henyep Group incubated Q9 Capital in-house, the long-term plan is to spin it off into a separate entity.
James Quinn, managing director of Q9, said that since Q9's soft launch, it had seen an uptick of interest from non-crypto native investors.
Around 90% of our clients are either completely new to crypto or did one or two investments previously but haven't been actively involved in the space – generally the Bitcoin Class 2021.
We have seen a definite uptick [for bitcoin] with a theme around the narrative of hedging for inflation and de-globalization. That, combined with the price action, have generated interest for our client set who have bought crypto for the first time.
Bitcoin Price Is Expected To Reach These Levels
If the buyers take over the 20-day SMA and the $35,700 line, Bitcoin price may cross the $36,000 threshold with ease. If the price fails here, it may drop to the support wall at $30,800. As per IntoTheBlock, this level is strong enough to absorb a large amount of selling pressure.