Bitcoin is back on the green side across the board with strong gains on shorter timeframes. The benchmark crypto managed to break away from the high zone around $30,000, taking off deep into the $40,000 territory.
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At press time, Bitcoin is trading at $44,351 with a profit of 6.4% over the past 24 hours.
During today’s trading session, the price of BTC appears to be reacting positively to several bullish news, including the announcement by accounting giant KPMG. The Canada-based company has added Bitcoin and Ethereum to its balance sheet, bolstering the case for crypto adoption.
Of all the high-profile institutions and investors that have made BTC ownership public in recent years, KPMG’s announcement today is at the very top in terms of significance and credibility. Hard to overstate this one.
—MacroScope (@MacroScope17) February 7, 2022
Chain analyst Jan Wüstenfeld show the potential impact of the BTC buy announcement. As seen below on the daily chart, the price of BTC moved from $4,3700 and almost broke through the major resistance point at $45,000.
In addition, the United States Securities and Exchange Commission has given the green light to investment firm Valkyrie’s exchange-traded fund (ETF) based on publicly traded Bitcoin mining companies. The investment product will start trading tomorrow, February 8andand will allow more institutional investors to gain indirect exposure to the underlying asset, BTC.
In this sense, the on-chain analyst Will Clemente checked in an increase in whale accumulation compared to last week, when Bitcoin began to recover from a sustained downtrend that began in the fourth quarter of 2021. The analyst believes that the recent upward movement in BTC price could extend due to its strength, prompting institutional investors to try to capture some of the moment:
Just as the move down has yielded no dead cat bounces or clean retests, this up move so far has yielded shallow declines and no clean retests, leaving capital to sweat and potentially have to hunt .
Bitcoin Strengthens Bullish Fundamentals, $45,000 Holds Key
In the short term, and as NewsBTC reported last week, Bitcoin looked set for a short squeeze. Investment firm QCP Capital backed a bullish case for the price of BTC due to a brief pause in the macro factor operating as a headwind for the cryptocurrency.
At the top of the list, the US Federal Reserve, which is expected to raise interest rates, will enter a period of hibernation at least until mid-March. Yet, in two days, the institution will release January 2022 Consumer Price Index (CPI) measurements.
If the numbers are higher than expected, US financial institutions may have an incentive to accelerate their monetary policy shift. Over the past few months, Bitcoin has reacted with volatility to the monthly CPI print.
Additionally, QCP Capital recorded “deep buying” for BTC as the rally continues past last week’s options expiration. This suggests “significant demand” operating in the market. The firm added:
Crypto prices rose even though the NASDAQ traded lower towards the end of last week. We don’t think this means that crypto has necessarily decoupled from NASDAQ, but it does tell us that there is tangible and targeted demand for crypto right now.
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BTC futures are also showing signs of bullishness as perpetual swap funding rates tend to be in negative territory. As more traders open short positions, the likelihood of a prolonged short squeeze increases, QCP Capital said.
9/ The market is still very long gamma (short-term options) since the DOV strikes (BTC: 41,000-43,000, ETH: 3,200). This would naturally lead to some resistance up to around 45,000 in BTC and 3,400 in ETH (as market makers would sell spot against calls).
— QCP Capital (@QCPCapital) February 7, 2022
