(Bloomberg) — After weeks of muted trading, Bitcoin could be poised for a new breakout and a potential breach of a key level, technical indicators show.
Over the weekend, the largest cryptocurrency bounced off the lower Trading Envelope band, a move that suggest it’s likely to retest $12,000. The measure tends to smooth moving averages to map out higher and lower limits.
In addition, the GTI Global Strength Indicator shows the coin has entered a new buying trend and isn’t in overbought territory, portending further gains.
Bitcoin rose as much 1.2% on Monday in New York to around $11,778. Peer coins Bitcoin Cash and Ether also advanced, while Litecoin and Monero traded lower.
Some crypto fans are betting that interest from institutional investors could help carry Bitcoin higher. Fidelity Investments launched its first Bitcoin fund last week. JPMorgan Chase & Co. also made an investment in ConsenSys while selling its blockchain unit Quorum to the software company for an undisclosed amount.
“As more household names like JPMorgan enter into the crypto space and regulators relax constraints on custodian companies, we’ll see more institutional capital pour into the industry, driving up the BTC,” said Marc Grens, president and co-founder of DigitalMint.
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.