Breakdown of the latest developments on the global exchanges
Oct 21, 2021, 10:29 AM GMT

Bitcoin Topped $66000.00 For First Time Ever, What's Installed Next?

Bitcoin Topped $66000.00 For First Time Ever, What's Installed Next?

Bitcoin's current rally represents the most significant benchmark of heightened demand for higher-risk securities, from stocks to indices. It is underpinned by an uptick in volatility across markets. Have a look at our latest GBPJPY analysis to learn more about the contributing factors to this trend.

In a day of heavy trading yesterday, the price of Bitcoin topped $66000.00 for the first time on record. The upswing was triggered by the launch of the first U.S. Bitcoin futures exchange-traded fund (ETF).

The move to integrate the cryptocurrency more into the global financial system lifted investors' optimism concerning the future of Bitcoin following China's crackdown on cryptocurrencies in September.

Bitcoin 1D Price Chart

Bitcoin's latest rally appears to be taking the form of an ABCD pattern, as can be seen on the daily chart above. The interim break in the trend took the form of a Descending Wedge, which confirmed the prevalence of longer-term bullish bias in the market.

This is additionally illustrated by the ADX indicator, which has been threading above the 25-point benchmark since the 15th of May. The trending market conditions are likely to remain active over the near term.

Over the last several days, the price action of the cryptocurrency was able to break out above the 23.6 per cent Fibonacci retracement level at 58281.28 and the historical resistance area (in red).

A subsequent bearish correction can reach the major resistance-turned-support level at 63800.00 before the broader rally can continue climbing further up north. However, heightened optimism could continue driving the price immediately.

Many questions regarding Bitcoin's stability remain

In light of these developments, the cryptocurrency sector topped a record-breaking valuation of $2.7 trillion, though some JPMorgan analysts have voiced concerns over the impact Bitcoin's ETF could have on cryptocurrency investment flows.

Additionally, the disparity between Bitcoin's appeal amongst traders and investors and economic stability, which we examined recently based on data accumulated over the last several months, continues to be widening.

Our observation is congruent with other experts' assertions that Bitcoin's rally is inspired mostly by a global increase in inflation pressures.