Despite a recent 12% drop from its all-time high, one analyst remains bullish on bitcoin. Carrying x, the merchant twitter.com/el_crypto_prof/status/1775567339796189211″ target=”_blank” rel=”noopener nofollow”>points to a confluence of bullish technical indicators and potential tailwinds, especially developments in Hong Kong.
Analyst: This crypto Bull Run Is Stronger Than 2021
At the time of writing, bitcoin remains under pressure. However, this cooldown follows a strong expansion that not only saw the coin more than double but also surpass all-time highs recorded in 2021. bitcoin then broke history when it soared to around $70,000, driven mainly by the retailers.
The bullish momentum, to an all-time high of $73,800, is due to institutions. In January 2024, the United States Securities and Exchange Commission (SEC) approved multiple spot bitcoin exchange-traded funds (ETFs). Since then, billions have been funneled into these products, issued by BlackRock and Fidelity.
Based on these supporting fundamentals, the analyst believes that the current bull run will likely be stronger than that of 2021. So far, the trader added, key technical indicators such as the average directional index (ADX) and directional indicators have printed numerous bullish signals. (GAVE).
Although prices remain stable, the formation on the daily chart suggests that market participants are bullish on bitcoin and cryptocurrencies in general.
Beyond the arrangement of the candles, the evolution of gold is clearly positive for bitcoin. Gold has recently rallied, reaching $2,300 this week, as uncertainty over U.S. monetary policy stoked demand for the yellow metal.
Although bitcoin has outperformed gold over the years, the analyst notes that as gold reaches record levels, bitcoin, often referred to as “digital gold,” could do the same.
Hong Kong Spot bitcoin ETF: A Game Changer?
Developments in Hong Kong could accelerate progress. Following in the footsteps of the US SEC, Hong Kong's Securities and Futures Commission (SFC) could approve multiple applications, allowing the issuance of spot bitcoin ETF shares to investors of all cadres, including institutions. One of the applicants includes Harvest Fund Management, an asset manager in mainland China.
The approval of bitcoin spot ETFs in Hong Kong could signal a major shift in its approach to btc investment and regulation. It is worth noting that mainland China continues to crack down on cryptocurrencies. However, Hong Kong is taking a more welcoming approach.
Featured image from Canva, TradingView chart
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