Evidence points towards US citizens using there $1,200 stimulus checks to buy Bitcoin (BTC). Grayscale Capital’s recent quarterly report provides a clue as to institutional interest in Bitcoin (BTC). The King of Crypto is hovering around $7,200 and looks set to start a climb up to $8,000.
For the last 72 hours, Bitcoin (BTC) has been hovering above $7,000. It is attempting a move up that would guarantee bullish momentum and erase all the losses brought about by the Coronavirus crash of mid-March. The King of Crypto has since made several attempts to recapture $7,200 and is currently only a few points away from turning this area into a support zone.
Stimulus Checks and Hedge Funds Could Push Bitcoin (BTC) to $8,000
At the time of writing this, citizens of the United States have started receiving the eagerly awaited $1,200 stimulus checks aimed at cushioning them from the economic effects of the Coronavirus. Approximately 80 Million Americans are estimated to have received these funds in their bank accounts by today, April 18th.
At the same time, crypto exchanges such as Coinbase, are experiencing fiat deposits that are equal or similar to the $1,200 amount. Co-founder and CEO at the exchange, Brian Armstrong, posted a tweet that had a chart that showed a spike in buys/deposits with a value of around $1,200. Mr. Armstrong’s tweet can be found below.
— Brian Armstrong (@brian_armstrong) April 16, 2020
Additionally, in their latest quarterly report, the team at Grayscale Capital highlighted that in Q1 of 2020, a total of $503.7 Million was invested into Grayscale products with an average of $30 Million per week going into their Bitcoin trust. The team also revealed that Grayscale had ownership of 1.7% of the total Bitcoin in circulation.
All Arrows Point Towards Bitcoin (BTC) at $8,000
As the aforementioned checks keep rolling into the bank accounts of crypto investors, buying BTC ahead of its halving will most likely cross their minds. Also on their minds is the possibility of a global recession and many believe Bitcoin is one way of preserving the value of fiat holdings when inflation hits. This can further be proven by the increased institutional interest in Bitcoin as seen through the quarterly Grayscale report.
6hr BTC/USDT chart courtesy of Coinmarketcap.com
Further checking our favorite 6-hour BTC/USDT chart, we observe the following support zones:
$7,050 $6,900 $6,800 $6,600
In terms of resistances, Bitcoin has the following price zones to overcome before reclaiming $8,000.
$7,200 $7,300 $7,450 $7,650 $7,950
In terms of moving averages the current price of BTC is above the 50, 100 and 200 MAs thus providing a bullish environment. MACD and trade volume are also in the green indicating continual buying interest of Bitcoin. MFI is steady at 70 indicating there will be a possible push towards claiming $7,300 or $7,450 in the hours ahead.
A Case for Cautious Optimism
However, Ethereum World News has continually cautioned its readers on the possibilities of Bitcoin (BTC) entering bear territory due to the global economic impact of COVID19. Also to add, the King of Crypto is continually fighting an ominous Death Cross on the daily chart.
Readers and traders are also reminded to place adequate stop losses to protect their leveraged positions on the various crypto exchanges.
(Feature image courtesy of Tim Graf on Unsplash.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.