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The Bitcoin price is on the roll. Though under-performing Ethereum (ETH) and leading DeFi tokens like Maker (MKR), BTC bulls seem to be in control.
Fanning activity has been positive announcements, especially from the regulatory front. News from the United States that national banks and savings associations are free to engage in crypto activities is a net positive.
As per the Office of the Comptroller of the Currency (OCC) letter to an unnamed bank, banks can now custody or stake coins on behalf of their clients.
Some of these clients are institutions. If these corporations or pension funds do, crypto will benefit from a capital injection as the space’s liquidity improves.
The world won’t adopt Bitcoin
Regardless, Peter Brandt—a veteran trader, is convinced Bitcoin and the gold standard won’t be adopted by the world.
In a tweet-storm, the trader controversially states that the world would instead choose fiat, oil, and precious metals-backed special drawing rights (SDRs). The SDR, in his projection, would not include Bitcoin.
“World could adopt a formulaic ‘SDR’ global reserve unit consisting of USD, JPY, CNH, EUR, CAD, AUD, GBP, Gold, Silver, Crude Oil. Bitcoin $BTC or other cryptos will NOT be part of the basket.”
Eventually entire monetary system will evolve past paper fiat. But over the near-term (10 to 20 years) the only way out of debt for govts is to deflate USD. I just object to the arrogance of the crypto crowd to assume its pet rocks will replace all fiats
— The Factor Report (@PeterLBrandt) July 22, 2020
Miners are net BTC holders
Meanwhile, with the uptick of prices, miners—known for their constant BTC liquidations, have paused their selling as per statistics from Byte Tree. There is a direct correlation between the Bitcoin price and miner liquidation.
If they accelerate their dumps, BTC prices slump. However, BTC s steadily recovers when there is no bear pressure from the network’s gatekeepers.
At this pace–and if BTC prices continue to edge higher and even close above $10,000, odds are miners will be net holders of the coin.
Bitcoin price analysis
In the last week, the Bitcoin price is up four percent against the greenback. However, Ether has the upper hand within the same period.
From the daily chart, bulls are in control. Candlestick arrangement points to bulls. Notably, BTC bull bars are banding along the upper BB as bands diverge. This points to high volatility and momentum concurrently highlighting the strength of buyers.
With the middle BB acting as the immediate support and prices trending above $9,500 intermediate resistance (now support), every dip should technically be a buying opportunity.
In this case, aggressive bulls should aim at $10,500. A break above this level will likely push the Bitcoin price to around $14,000 (June 2019 highs).
Chart courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author This is not investment advice.
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Dalmas Ngetich
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies. Enjoying the opportunity to help educate bitcoin enthusiasts, he writes insights and coin price chart analysis.
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