Bitcoin. Ready to rise?

13 Jul, 2022

Start date

09 Aug, 2022

End date

27 200

Target Price

Buy

Tip

Instrument: BTCUSDT

Make money on an idea!

Bitcoin has shown its ability to recover and tested the $22,000 level. And there are other reasons to think about buying it.

Analyst's technical analysis background of the idea

Bitcoin has consolidated above $20,000, forming an ascending channel in the process. This makes it possible to expect upward movement from the channel's lower trend line toward $22,000 (the local low on 8 July 2022). If the price manages to overcome this level, it would be worth considering opening buy positions with a target of $27,200.

Analyst's fundamental analysis background of the idea

Analysts at Glassnode think that the US Federal Reserve's more dovish monetary policy due to the worsening economic situation could be a surprise for crypto markets, in general, and BTC, in particular. Markets are currently pricing in only an aggressive set of actions from the Fed, but it could turn out that with the regulator's softer rhetoric, the market could recover faster than many expect.

When BTC's price went down, USDT's purchasing power went up. In other words, more cryptocurrency can now be purchased with the same amount of stablecoins. A strong sign of potential growth can be found in the fact that stablecoins' market capitalisation continues to grow relative to BTC's. Stablecoin supply on exchanges is moving into an accumulation phase at the same time that we're seeing BTC outflows and a corresponding shortage. Data from Santiment indicate a two-year high for USDT supply and four-year lows for BTC supply.