Crypto

As many analysts and pundits across financial news have noted, this current bull run in Bitcoin and Ethereum is similar to the rally in Spring 2020 because it is fueled by institutions and wealthy individuals (whales) piling into the sector.

This piece will discuss the numerous catalysts that have propelled BTC back over $50,000 and if or how they differ from the rally that led to the all-time high being hit this Spring.

The first four days of October 2021 have been exciting times for Bitcoin bulls, starting this week at approximately $43,000 now five days later BTC is trading $12,000 dollars higher. That equates to a 32.5% increase over the last seven days beating Ethereum’s 25% gain for the same period.

After Friday’s tremendous upside surge that took pricing $5,000 higher, we saw a break above resistance today that BTC closed below on Friday. Therefore, today’s continued bullish momentum can be viewed as just as big as last week’s.

Bitcoin experienced a brief dip to $40,000 last week Friday after the Chinese government implemented a ‘blanket’ ban on cryptocurrencies. This announcement by the Peoples Bank of China doubles down on their announcement made earlier this year that was mainly focused towards mining farms.

In my last article, I wrote about the current unique relationship between gold and BTC. This correlation is one where gold leads BTC by four months. It began at the start of the pandemic and continues still. My mid-term forecast for Bitcoin futures using this relationship can be summed up in a quote from the article published September 13th -

The world’s favorite Cryptocurrency and the world’s favorite metal rarely move in synch. If anything, the two are known for having a negative correlation. But when looking at both markets’ historical price action, I found a relationship that is not so black and white.

Bitcoin as well as their futures on the CME are flirting actively with $50,000 as of 3:30 EST. This is significant because the current rally has been brought to a halt unable as of yet to breach this key phycological resistance area on a closing basis.

Bitcoin broke above the resistance that had been curtailing its move up to $50,000. At approximately 6 PM EST BTC futures are trading up 4.13% or $2,015 at $48,715. All through this week, when alt. coins were rallying, BTC retested its support at $44,000 made up by the 100-day M.A. and the 38% retracement level.