Cryptocurrencies

Trader shares 7 reasons to be bullish on Bitcoin (BTC) above $ 12,000 – Cryptocurrencies

Fidelity is all about Bitcoin

Bitcoin (BTC) climbed above $ 13,000 thanks to PayPal: a cyclical factor can not be the origin of a bull run?

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Cole Garner presents the 7 reasons he believes are favorable to bulls. Regular readers of The Coin Tribune can certainly guess at least half of them.

Bulls want Bitcoin independence

The trader Cole garner revealed in a series of tweets from October 21, 2020, the factors that he believes would argue in favor of an upward trend for Bitcoin.

A Bitcoin decoupled from traditional assets would be one of the most important market events.

This is one of the main reasons behind a bull run in the BTC. Garner retweeted a diagram originally posted by Eric Wall, a diagram showing that the price movements of the Bitcoin are gradually gaining independence from those in traditional markets.

Bitcoin previously exhibited a strong correlation with traditional markets, in particular the S&P 500 and gold, especially after the coronavirus crash.

Garner is not the only one to have mentioned this trend, many analysts like statistician Willy Woo, predict a continuation of this evolution.

The whales are rather calm

Garner also indicates that the funding rate in the perpetual swap market remains neutral. Despite the rise in prices, the funding rate suggests that the majority of traders are adopting long positions instead of short positions.

The sentiment of institutional investors confirms this orientation, according to the latest report Commitment of Traders (COT).

Garner believes that after breaking through the resistance level of $ 11,900, very little is against further positive price action.

He sums up the current situation by stating that above $ 12,000, the horizon is clear in the stock order books.

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Moreover, the absence of the whales suggests that the desire to sell large quantities of Bitcoins is low and exchange balances are declining, despite the increase in the price of Bitcoin.

Bitcoin is trading at $ 13,095 as of this writing. The horizon above 12,000 is not as clear as Garner expected. Garner does not mention the US presidential election as a possible lever for the price of BTC but, Donald Trump and Joe Biden could very well play a role – even a small one – in the rise in the price of BTC. It takes everything to do a bull run.

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