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Bitcoin Price Trades in a Tight Range

October 8, 2018 at 19:00 by Arathur Stephen

Bitcoin price has been trading in a tight range between $6,500-$6,600 levels after it surged to $6,600 level last week. However, should traders expect a breakout for the BTCUSD pair towards $10,000 or below $6,600 level?

Bitcoin price has traded within the $6,800 and $6,300 range between 21 September and 2 October. Few days after, the price range has become tighter. From a historical pattern of Bitcoin prices, whenever the price is within a tight range, a massive breakout usually follows to the upside or downside.

More often than not, the direction of the breakout follows the direction of the immediate trend before the range move. Based on this scenario, we might continue to see an upward momentum. What further reasons do we have for this?

Institutional Investors Pour Money Into the Crytpo Market

Recently, there has been a sign of optimism in the air as the movers and shakers of the crypto world believe the time is right to pump money into the crypto market.

A hedge fund manager, Spencer Bogart, a partner at cryptocurrency and blockchain venture firm Blockchain Capital, believes that the bearish trend is ending and that the bulls are preparing for a recovery.

While speaking during CNBC’s “Fast Money” on Friday, Bogart was quoted as saying:

Bitcoin is close to bottoming, and once it rebounds, this week’s developments will fuel its climb…We’re down about 70 percent from our highs, so I think that Bitcoin is close to bottoming and so is the rest of the market.

According to him, ‘Bitcoin is close to bottoming’ and will surpass $10,000 at the end of 2018 due to recent developments in the Crypto market.

Moreover, In a bid to provide clients digital asset investment options, beyond the number one digital currency, Bitcoin, retail brokerage TD Ameritrade Holding Corp (AMTD.O) stated on Wednesday that it has invested in a new Cryptocurrency exchange known as ErisX.

Again on Thursday, legendary Wall Street billionaire Advisor, Ric Edelman revealed that he has invested in Bitwise Asset management.

The following day, on Friday, Yale’s CIO, David Swensen announced that he has invested also in two Cryptocurrency funds. The funds are operated by Andreessen Horowitz and Paradigm. Both were launched by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang.

Central Banks’ Influence on Crypto Prices

Elsewhere, the Fundstrat survey has revealed that the central banks play a huge role in influencing cryptocurrency prices. So far, more than half of institutional investors polled believe that Bitcoin price has bottomed.

The company said that the online surveyed had six questions and was carried out between 30 September and 3 October 2018. The institutional survey was conducted at a dinner with 25 institutions present and 9,500 responses were so far received.

In conclusion, Bitcoin futures spot prices were tracked higher on Monday. The Cboe Global Markets October contract XBTV8 ended the trading session up 1.4% at $6,625. Meanwhile, the comparable CME Group October contract BTCV8 ended Monday up 1.5% at $6,630.

What is next? The virtual currency is well supported by the just mentioned recent developments and may be ready for the next leg higher.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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