- Summary:
- Bitcoin price has been under pressure in recent days, but its resilience above the $65k mark could draw in more institutional investment.
Bitcoin price rose on Thursday to recover losses registered the previous day and resume the journey toward the $70k mark. The crypto coin was up by 1.5 percent and traded at $67,640 at the time of writing, bouncing strongly from Wednesday’s trading, where it touched lows of $65,000. As discussed here, a price action above that psychological round figure mark signifies Bitcoin’s resilience and points to its strong chances of breaking into the $70k territory.
The crypto market has been under pressure from concerns over Fed interest rate decision in November. That has triggered a risk-off sentiment in the market, underlined by a rise in US treasury bond yields. In turn, that has exerted downward pressure on Bitcoin price in recent days. Nonetheless, its resilience has seen it gain 0.4 percent in the last week.
The case for institutional momentum
As Bitcoin shows its resilience, institutional investment in the asset is likely to rise significantly. Institutional adoption of Bitcoin fueled the 2021 cryptocurrency rally, but the absence of a regulatory framework limited participation by institutional investors. However, with Bitcoin ETFs in play this time around, a move into the $70k territory could set off the momentum needed to trigger a price rally.
Bitcoin has built a strong case for institutional investment, with its year-to-date returns at 60 percent. That is far higher than the S&P 500’s returns of 22 percent and the Nasdaq Composite Index’s 23 percent. In addition, it has outperformed safe haven gold’s gains of 32 percent, adding credence to its strong standing despite the long wait for a post-halving rally.
Bitcoin price prediction
The momentum on Bitcoin price favours the upside to continue, if the action stays above the 67,150 mark. That will likely see the establishment of the first resistance at 67,500, but a stronger upward momentum could clear that hurdle to test the second resistance at 68,542.
On the other hand, a move below 67,400 will signal control by the sellers. In that case, the first support could come at 66,855. However, if the downward momentum persists, it could break that support and invalidate the upside narrative. Meanwhile, the decline could extend to test 66,375.
