Bitcoin completes consolidation in a triangle
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Bitcoin is up 1.4% in the last 24 hours, trading at $19,550 at the time of writing. US stock indexes had moved decisively higher the previous day, and index futures are developing at the start of European trading. A buoyant stock market backdrop supports appetite for crypto assets, but overall volatility remains unusually muted.
Bitcoin’s swings since June fit into a triangle with a descending resistance line and horizontal support at $18.8K, and now the price is moving at the right angle to the figure. Usually this situation is resolved by an increase in volatility on the way out of the area. The confirmation of the break in the long-term consolidation should be looked for no earlier than the exit of the previous highs at $20.4K or the failure below $18K, with the second variant more likely. However, we note that the downtrend in BTCUSD has lasted for almost a year, taking away more than 70% of its peak price and becoming attractive to long-term buyers.
According to CoinShares, investments in crypto funds increased slightly last week after a small outflow the week before. The supply of funds amounted to 12 million dollars. Bitcoin investments increased by $9 million, and Ethereum investments decreased by $4 million. Investments in funds that allow shorts on bitcoin increased by $7 million. Investors remain apathetic; floats over the past five weeks have not exceeded 0.05% of assets under management, CoinShares noted.
News background
Bitcoin has the potential to break the link to traditional risk assets. This can happen thanks to investors’ recognition that most threats come from governments and fiat currencies, according to LookIntoBitcoin. Based on previous cycles of investor capitulation, the timing is now suitable for strategic BTC purchases.
According to GlobalData’s worldwide survey of asset managers, wealthy investors still want to invest in digital assets. And because cryptocurrencies make up only 1.4% of their portfolios, they are willing to take maximum risk.
French investment bank Société Générale has received permission from local regulators for its subsidiary to store, buy, sell and exchange cryptocurrencies.
According to a new Coincub report, in the third quarter of 2022, Germany became the most favorable country for doing crypto business, climbing to first place in the ranking with Switzerland, Australia, UAE, followed by Singapore. The US dropped from first place to seventh due to unfavorable tax policies and lack of clarity on crypto regulation.
