Digital Currency Revolution Series: BTC/USD Reclaims $6.25k, What Drives Bitcoin's Rally?

Bitcoin price rally has reclaimed $6,380.10 level which is on the verge of hitting a new 6-month high. The uptrend has been able to prolong surging higher above 6.25k mark today after breaking out a sentimental resistance of $6,000-$6,180 regions, which many traders and analysts reckon as a pivotal area for the cryptocurrency market to drive an imminent further bullish trend.

The fundamental driving forces: 

1) Fidelity’s most likely launch of institutional cryptocurrency trading wing: Fidelity Investment, one of the largest asset management companies (AMCs) across the globe, will launch a new service to transact Bitcoin for its institutional clients as per the sources of Bloomberg report.

2) Mounting interests among institutional space: As per an investment company’s survey of 441 institutional investors—including pensions, hedge funds, and endowments—to determine the investment outlook for bitcoin and other cryptocurrencies. 

About 22% of institutional investors already have some exposure to digital assets, with most investments having been made within the past three years, as per the study. 

Furthermore, the institutional Bitcoin trading volumes have moved into growth for the 4thconsecutive month, as per the other reports of renowned cryptocurrency data outlet ‘Diar’ also.

3) Facebook’s crypto-aspirations: Facebook’s interest in blockchain and cryptocurrency development, with the forthcoming Facebook’s new coin likely to be announced in next quarter. Along with their exclusive blockchain team, techno savvies like, Mr.Christian Catalini who is the founder of the MIT Cryptoeconomics Lab, is reportedly working for Facebook (FB) to develop their crypto-coin.

4) The surge in OTC volumes: The trading activities for a number of OTC clients have surged about 60% to 70%.

5) Regulatory approach: Although regulatory procedures have been a bit delayed, it has been stringent of late. This, in fact, is perceived as the gaining of the investors’ confidence. The SEC has finally published the much-awaited regulatory ‘Framework for Investment Contract Analysis of Digital Assets.’ While an important development in detailing the guidelines for issuing crypto-assets in compliance with federal regulations, the framework doesn’t appear to be exhaustive as cited by the SEC.

Overall, after 2018’s bearish streaks, all the above driving forces would have prompted the pioneer cryptocurrency's consolidation again. Foreseeing further rallies on cards and the resumption of the major uptrend, in the long run, it is wise to capture minor price dips to construct long build ups for the medium term targets up to $6,814 levels with a strict stop loss of $5,395 level (spot reference: $5,985).

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 50 levels (which is bullish), while hourly USD spot index was at 1 (absolutely neutral) while articulating (at 07:32 GMT). 

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