- Bitcoin underwent a strong drop last week after peaking at $19,956 at the turn of the month.
- Last week, though, the cryptocurrency plunged to $17,600.
- But as the weekend has come about, Bitcoin bulls have taken back control of the cryptocurrency market.
Bitcoin Rallies Back After Last Week’s Strong Drop
Bitcoin underwent a strong drop last week after peaking at $19,956 at the turn of the month. The cryptocurrency fell as low as $17,600 on top exchanges, crushing the hopes of many investors that were expecting $20,000 to break.
But as the weekend has come about, Bitcoin bulls have taken back control of the cryptocurrency market.
The cryptocurrency traded as $19,400 on Sunday morning and currently trades for $19,100. This recovery has allowed the cryptocurrency to actually end with a relatively bullish weekly candle.
While this is far from the green candle that many were hoping for, it was better than the “bearish engulfing” candle that previously occupied the Bitcoin chart.
Many are confident that a move toward $20,000 and beyond is likely, as long as the stock market and the U.S. dollar behave to some extent. There has been a decoupling between BTC and traditional markets as of late, though, which may further boost BTC.
Chart of BTC's price action since Feb from crypto trader CryptoCobain.
Fundamentals Better Than Ever
The bullish reversal seen on Bitcoin’s chart comes as the fundamentals of the leading cryptocurrency have seemingly become more clear than ever.
Paolo Ardoino, CTO at Bitfinex, recently said that the BTC bull case will force global asset managers to “recalibrate their portfolios accordingly” in line with BTC:
“No amount of cynicism, disbelief or even fantastical thinking can obscure the compelling case for Bitcoin,” he said. “Global asset managers will continue to recalibrate their portfolios accordingly.”
As he said this, institutional investors have shown immense interest in Bitcoin.
MicroStrategy recently raised $650 million from institutional investors looking to acquire exposure to BTC and cryptocurrencies as a whole:
“MicroStrategy estimates that the net proceeds from the sale of the notes will be approximately $634.9 million, after deducting the initial purchaser’s discounts and commissions and estimated offering expenses payable by MicroStrategy. MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending identification of working capital needs and other general corporate purposes,” MicroStrategy recently announced.
As the American business services said it would raise $400 million, the increased round size indicates strong reverse inquiry from institutional investors to acquire exposure to Bitcoin.
It may also show how the cost of money is extremely low right now due to easy monetary policy.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Weekly Candle "Saved" After Flash Dump to $17,600 Last Week
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Author: Nick Chong