Bitcoin Technicals Signal Parabolic Rise, Blackrock invests US$6.5 million in BTC Futures, and French Government Facilitates Faster Bitcoin Adoption
Bitcoin technicals are growing stronger even as the BTC price against the US Dollar hovers a few thousand dollars below the ATH (all-time high).
Technical Charts signaling Parabolic Bull Run in 2021
Since April 2013, Bitcoin price has for the first time closed 6 consecutive monthly green candles, signaling further parabolic gains in 2021. The last time six green monthly candles closed was in April 2013 when the BTC/USD pair was hovering around US$140. After such technical features, the price retraced by less than US$100 in the following 2-months and then increased by 700% to reach US$1,000.
A similar trend was seen in 2017 also. Instead of 6 candles closing, 5 consecutive candles closed and it led to a parabolic bull run that saw a price jump from US$5,000 to almost US$20,000 by 2017-end.
As the bull run in 2017 was fuelled mainly by the retail investors, the momentum couldn’t be sustained in 2017 and it was followed by a price crash. However, in 2020 and 2021, the scenario is different. Multiple reports (including that of PwC) have said that the 2020’s bull run was fuelled by heavy investments by institutional investors.
The recent technical indications suggest that in 2021 too the Bitcoin price will increase significantly. Bloomberg strategist, Mike McGlone, has predicted the BTC price to reach US$400,000 by 2022, following the trends of 2013 and 2017. He also went on to say that Bitcoin is going to become “a global digital reserve asset”. Peter Brandt, a veteran trader and market analyst, believes that the BTC price would further increase by 250% to reach above US$200,000. He said:
“I think we’re in that midpoint pause where in 2017 Bitcoin swirled around for a month or two before we saw the final move up.”
Bitcoin receiving Increased Institutional Investment
BlackRock, one of the largest investment firms in the world that has around US$8.6 trillion in assets under management (AUM), has reportedly allocated a small part of its portfolio in Bitcoin on the Chicago Mercantile Exchange (CME) financial derivatives platform.
From a regulatory filing with the Securities and Exchange Commission (SEC), it is clear that BlackRock has started trading in Bitcoin futures. The concerned document says that the investment firm has invested US$6.5 million in 37 futures contracts (which supposedly expired on March 26, 2021) on the CME BTC-based derivatives. The firm has claimed that their investment in the futures contracts has fetched them gains of US$360,000.
Increased Adoption of Bitcoin is on the Cards
After the Defense Council meeting yesterday, the French Prime Minister Jean Castex announced a series of measures for preparing the people of France for further increase in the price of Bitcoin. The measures announced include tax moratorium as well as constraint easing for companies who specialize in buying and selling digital assets and deployment of mobile counters across the territory.
Studies reveal that European Union countries, especially France, lag behind the USA and Britain in the adoption of Bitcoin. That’s why France wants to speed up the Bitcoin adoption process and make BTC reach around 30 million French citizens by the end of June 2021.
“To achieve global immunity from the growing risks caused by the proliferation of fiat currencies, we need to ensure that our citizens and financial institutions have enough bitcoin in reserve as long as the exchange rate remains reasonable.”
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