- April 4, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Despite a recent 12% drop from its all-time high, one analyst remains bullish on Bitcoin. Taking to X, the trader points to a confluence of bullish technical indicators and potential tailwinds, especially developments in Hong Kong.
Analyst: This Crypto Bull Run is Stronger Than 2021
When writing, Bitcoin remains under pressure. However, this cool-off follows a sharp expansion that not only saw the coin more than double but also break above all-time highs recorded in 2021. Then, Bitcoin broke history when it soared to roughly $70,000, driven primarily by retailers.
The push higher, to an all-time high of $73,800, is at the back of institutions. In January 2024, the United States Securities and Exchange Commission (SEC) approved multiple spot Bitcoin exchange-traded funds (ETFs). Since then, billions have been funneled to these products, issued by BlackRock and Fidelity.
Based on these supportive fundamentals, the analyst thinks the current bull run will likely be stronger than that of 2021. So far, the trader added, numerous bullish signals have been printed by key technical indicators like the Average Directional Index (ADX) and Directional Indicators (DI).
Though prices remain flat, the formation in the daily chart suggests that market participants are upbeat about Bitcoin and crypto in general.
Beyond candlestick arrangement, developments around gold are a net positive to Bitcoin. Gold recently broke higher, soaring to as high as $2,300 this week as uncertainty on the United States monetary policy fan demand for the yellow metal.
Even though Bitcoin has been outperforming gold over the years, the analyst notes that as gold reaches record highs, Bitcoin, often referred to as “digital gold,” could follow suit.
Hong Kong Spot Bitcoin ETFs: A Game Changer?
Events in Hong Kong could accelerate the leg up. Following the steps of the United States SEC, the Securities and Futures Commission (SFC) of Hong Kong might approve multiple applications, allowing the issuing of spot Bitcoin ETF shares to investors of all cadres, including institutions. One applicant includes Harvest Fund Management, an asset manager in mainland China.
The approval of spot Bitcoin ETFs in Hong Kong could signal a major shift in their approach to BTC investment and regulation. It should be noted that mainland China continues to crack down on crypto. However, Hong Kong is taking a more welcoming approach.
