Bitcoin price is expected to hit a bullseye of $7,400. This will represent a full recovery from the recent high of $7,378 in early September. To back up this claim, there are some recent occurrences in the Crypto market that are poised to create a momentum in Bitcoin investments.
Bitcoin Has Breached The Support Level
In Crypto markets, a level of support is a price mark that cushions a particular value of a Digital Asset from plummeting in the short run. Although it does not hedge against far-reaching volatilities, it is instrumental in projecting an upward momentum in a stable market environment.
The level of support for Bitcoin had been $6, 649. The target has already been achieved as Bitcoin is trading at $6,658 as at the time of writing. The support indicator is derived through statistical analysis methods which are; the Fibonacci 38.2% one-day, Simple Moving Average 200-4h, the Fibonacci 23.6% one-week, and the Bollinger Band one-hour Middle. The analysis methodologies use historical data and current market dynamics to determine the level of support. It is, therefore, a comprehensive method for analyzing the market and determining the sustainability of the momentum in the short run.
The level of support is also referred to as the technical confluence indicator. The level of support of $6, 649 is thus expected to symbolize a steady momentum that will see Bitcoin price rally to the $7,400. However, to get to the next level of resistance, there will be another minor resistance at $6, 769. It is a convergence of the BB 15m-Upper, BB one-day Upper, the previous weeks high, and the last 1 hour high.
The External Causal Factor For The Growth Is The Bitmain IPO Application
Earlier this week, Bitmain, the leading Bitcoin mining chip producer in the world with an 85% market coverage, filed an application for an IPO. Bitmain made the proposal in its submission of financial statements to the Hong Kong Exchange. The reports show that Bitmain has been making profits amid Crypto market volatilities and expectations are high that the IPO will be a game-changer in the interaction of Cryptocurrencies and the traditional financial markets.
The HKE is one of the largest stock market centers in the world and has a market capitalization of $5.2 trillion. It has previously hosted major IPOs for global giants such as Xiaomi Corp and others with tremendous success.
The IPO application has been having a direct impact on Bitcoin as it is the manufacturer of mining chips. This is because the development of the firm is expected to have a direct impact on Bitcoin ease of mining, demand, and supply. Bitmain is yet to submit a funding target, and intention for the IPOs but the market is already feeling the positive effect.
Bitcoin Cash Is Also Feeling The IPO Effect
Following yesterday’s IPO application announcement by Bitmain, Bitcoin Cash price was bullish with gains of 20%. Bitcoin Cash is a holding of Bitmain and the IPO is largely expected to impact BCH prices in almost the same way as BTC prices. Since the two Digital Assets are prominent in the list of the top ten largest Tokens by market capitalization, their success will definitely influence an overall positive Crypto market momentum.