Bitcoin (BTC) Price Breaks Out of Its Multi-Month Consolidation to Trade Above $9,500

UTC by Steve Muchoki · 2 min read
Bitcoin (BTC) Price Breaks Out of Its Multi-Month Consolidation to Trade Above $9,500
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Bitcoin (BTC) might have triggered the long awaited rally ahead of the $2 trillion Fed stimulus that is expected soon.

After a three month silence in the Bitcoin (BTC) price movement, which had some worried of its undisputed volatility, the mother crypto coin has finally broken out of its multi month consolidation. The slight volatility has seen the asset breakout and rejuvenate hopes of trading above $10k soon.

In the past 24 hours, the instrument gained around $178 reciprocating to a change of approximately 2%. With the asset’s market supply halved since the 2020 BTC halving, and the continuous increase in demand, the overall effect seems to start kicking in.

Regarding the analysis on Bitcoin and U.S. dollar delivertice on the weekly chart timeframe, the recent breakout was a crucial confirmation of the expected rally.

Bitcoin (BTC) Price Fundamental Analysis

Several fundamental factors have been piling up in the past few months. Clear crypto regulations, like that seen from the United States allowing financial institutions to act as digital asset custodials, have significantly pushed against the bear market.

Another major factor remains the fact that more retail traders have adopted digital assets since the last rally, 2017/2018. As the world fights to flatten the coronavirus infection curve, digital transactions have become popular, where Bitcoin largely lies.

One cannot forget to mention the increased institutional investors led by hedge fund managers who are seeking to invest in the crypto space at large. This has been seen through reports from institutions like Grayscale that said more institutional players have joined the space in the past few months.

Perhaps they have noticed an imminent rally with higher profit returning power. This continues to attract more retail traders who continue investing their cash into the digital space. As of the time of reporting, Bitcoin market capitalization stood at around $175.33 billion, with its 24-hour volume at $16.99 billion. Bitcoin (BTC) price was around $9,507 at the time of writing, the bulls seem to be in control and the next hurdle remains $10k.

Bitcoin and the crypto community at large is expected to win big with the continued strain in the global economy. As seen with the EU block $858 billion stimulus package beside the $1.3 trillion budget for the same period.

Similarly, the same high spending is being observed with huge economies like the United States that is expected to approve another 2 trillion stimulus package.

The high cash printing rate is going to raise the fiat inflation which will significantly favor the digital assets that gave a definitive maximum supply.

Bitcoin News, Cryptocurrency News, News
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