Bitcoin [BTC] has demonstrated signs of a bullish trend after closing above the Bull Market Support band. This occurred after three consecutive weeks of staying below it.
Bitcoin's Bullish Trend
Despite brief deviations, Bitcoin's price action now appears to have a bullish trend. The current level of around $67k acts as a key liquidity zone. Strong volume breaking through this zone and staying above it instills confidence in traders and investors to go long or add to their positions.
Institutional Interest in Bitcoin
Institutional interest in Bitcoin continues to grow, fueling its upward momentum. Recently, Semler Scientific purchased an additional 83 Bitcoin, worth $5 million. This increased their total holdings to 1,012 BTC. With this acquisition, they are now the fourth-largest Bitcoin-holding company in the US, excluding miners.
Bitcoin and S&P 500 Divergence
Bitcoin's price movements often reflect those of the U.S. stock market, particularly the S&P 500. However, BTC remains 20% below its July level and 30% below its March 2024 level, despite the market trading near all-time highs. This divergence presents an opportunity to buy BTC, with the expectation that it will catch up to the stock market’s recovery. Lastly, the increasing supply of stablecoins like USDT and USDC also supports a higher BTC price. Over the past three months, their market capitalization has grown by 3%, indicating rising demand. With BTC supply growth slowing after the halving, this increasing demand suggests that price is likely to continue climbing higher.
With the continued signs of a bullish trend and growing institutional interest in Bitcoin, investors are watching for further price growth opportunities.
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