Bitcoin is preparing itself for a period of upside price action having remained above $30,000 since January 2, according to eToro’s market analyst Simon Peters.
Peters’ bullish comments come after a monthly candle close at $33,100, which could be considered an early sign of a reversal with the wick expanding all the way to $41,000.
However, in spite of that Peters is calling for new-all time highs following a month that has seen Bitcoin establish a key level of support at $30,000
“We continue to see companies add bitcoin to their balance sheets, but the trickle has not yet developed into a snowball on a mass institutional scale.” He said.
“The fears of a falling dollar are very real, so what might drive more firms and CEOs to move some cash into bitcoin?
“I believe it will be a chain of events. We’ve discussed previously the OCC decision on stablecoins, and I really think we shouldn’t understate the importance of this move; it could well be the catalyst for huge listed companies with large cash reserves to move into bitcoin.
“Digital platforms that have large cash reserves and minimum OPEX are well suited to moving their cash reserves into bitcoin to protect against inflation. It might just take a small spark.”
At the time of writing Bitcoin is trading at $33,300 after failing to breach the $35,000 level of resistance. If it begins to close candles beneath $32,200 it will likely test the $30,000 level of support before deciding its direction for this month.
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