BTC price, Bitcoin news and analysis:
- The Bitcoin price reached its highest ever level in early European trade Thursday, topping $29,000 and well positioned to hit $30,000.
- Reports suggest that hedge funds, institutions and even blue-chip US corporates are investing in the cryptocurrency, adding to the demand from retail investors.
BTC/USD heads towards 30,000
The price of Bitcoin rose again in early European business Thursday, hitting a record high at $29,302 and in a good position to reach the $30,000 level, perhaps after some profit-taking. As the chart below shows, BTC/USD remains in a strong upward-sloping channel but is currently overbought, with the 14-day relative strength index above 80. An RSI above 70 points to an overbought asset.
BTC/USD Price Chart, Daily Timeframe (October 13, 2020 – December 31, 2020)
Source: IG (You can click on it for a larger image)
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Recent reports have suggested that hedge funds, institutions and even blue-chip US corporates are now buying the cryptocurrency, adding to the demand from retail investors. A weak US Dollar has helped BTC/USD too, and institutional investors may have also been encouraged to buy Bitcoin by increased US surveillance of the market, clear from the US Securities and Exchange Commission’s decision to file a lawsuit against Ripple Labs, alleging that it raised more than $1.3 billion through the sale and distribution of the digital assets of Ripple (XRP) without registering.
Bitcoin is also seen increasingly as an inflation hedge, an alternative to gold and as a more common mainstream payment method.
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— Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex