27.10.202015:04 Forex Analysis & Reviews: Bitcoin continues to grow, exhibits positive trade prospects

Long-term review

The largest debit electronic payment system, PayPal, announced that its users will be able to buy, sell, and store cryptocurrencies, and starting next year, they will be able to pay it in 26 million stores.

This news once again confirms the theory of Bitcoin's antifragile instrument - "That which does not kill us, only makes us stronger." Who would have thought that the first purchase in 2010 with the help of a Bitcoin surrogate would end with international use, and not just in the form of some money transfers, but widespread use, like ordinary monetary units.

The famous billionaire and CEO of Galaxy Investment, Michael Novogratz, expressed his opinion on the PayPal news that market giants such as Visa, Mastercard, and American Express will also follow the path of cryptocurrency instruments very soon.

"The question no longer arises whether cryptocurrencies are an object of interest, whether bitcoin is an asset, whether the blockchain will become part of the financial infrastructure. The question is not whether it will happen, the question is when it will happen. Each and every company should have its own plan, "said Novogratz.

Note that last year there was more than once news that Visa and Mastercard were actively recruiting staff for crypto departments. In fact, they are in the process of opening a new segment of instruments.

The next and important news is devoted to large players, even in the last article we wrote that influential funds with tens of billions of dollars in assets come to the crypto industry on a monthly basis. Now we have conducted a survey among European institutional investors, including banks, asset managers, and pension funds from Germany, Austria, Switzerland, and Liechtenstein. The total amount of assets under the management of the respondents is more than 719 billion euros.

So, following from the survey, 61% of institutional investors have already invested in cryptocurrencies or are going to do so. This is a good signal that confidence in the new market is growing, and that trust is followed by asset growth and stability.

The series of positive news ends with a new record for Bitcoin - addresses with volumes of 1000 BTC or more on their wallets. So, now there are 2231 such addresses, and their percentage is growing, and this is due to the fact that institutional investors come to the market with new funds.

As you can see from the material provided above, the crypto environment is developing and death and collapse are no longer predicted for it, but, on the contrary, infrastructure is being worked out for more effective use.

Exchange Rates 27.10.2020 analysis

Trade prospects:

The Bitcoin quote has repeatedly updated the maximum of the current year, there are literally several hundred dollars left, and under the pressure of buyers, the maximum of 2019 will fall to $13,868, and this moment will come very soon.

The parallels between 2017 and 2020 continue to appear in the market, it is worth being prepared for the fact that we will see not just an update of the local maximum, but a completely new historical maximum for Bitcoin.

Regarding the price outlook, the breakdown of the $13,868 coordinate will lead to even greater excitement, where the December 2017 high of $19,891 will be hit. Imagine what would happen if the $19,891 - $20,000 area fell. Google Trends will go off scale, and in every gateway, they will discuss Bitcoin and its new successes, this will lead to even more cash injections.

In the latter case, everything is not so simple, since the high excitement will lead to acceleration, and this, in turn, will lead to the risk of a local collapse in the form of fixing excess profits, but we will talk about this in subsequent articles on cryptocurrencies.

Exchange Rates 27.10.2020 analysis

General background of the crypto market:

Analyzing the total market capitalization of the crypto industry, you can see that the Total Market gained $73 billion in October and is currently $399 billion, where the $400 billion mark has already been passed by the market.

An upward trend is visible to the naked eye, where the market volume is already at the level of 2018, and this is not a chapel. The consistent growth of the Total Market may lead not only to the renewal of the peak of $ 831 billion but to a completely new horizon in the form of $1 trillion.

Market Cap: $399,077,102,663

BTC Dominance: 61.9%

Exchange Rates 27.10.2020 analysis

The index of emotions (aka fear and greed) of the crypto market in October dropped to 40 points, but then leveled off and is now on the positive side, above 60. In fact, we have a desire for further growth than the fear of a collapse.

Exchange Rates 27.10.2020 analysis

Indicator analysis:

Analyzing different sectors of timeframes (TF), it can be seen that the indicators of technical instruments relative to the four-hour, daily, and weekly periods signal a buy, which is confirmed in the market by the upward movement of the Bitcoin price.

Exchange Rates 27.10.2020 analysis

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Gven Podolsky,
Chuyên gia phân tích
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