Last week, the price of bitcoin soared by more than 20%. This rally is continuing this week, with the price currently at $8290. This is the highest level for the cryptocurrency since May 24.
The rally has happened due to the increased demand for Bitcoin. The so-called Bitcoin dominance rate has soared from 40% a week ago to more than 47%. This dominance measures the volume of the total cryptocurrency market controlled by Bitcoin.
The biggest driver for this surge is the news that Blackrock was exploring investing in the cryptocurrencies space. Blackrock is one of the biggest investors in the world with stakes in more than 80% of all public companies.
Another bullish factor for Bitcoin is that the SEC is nearing the approval of a Bitcoin Exchange Traded Fund (ETF). The ETF has been proposed by asset manager Van Eck Associates Corp and startup SolidX Management LLC. Another company, Bitwise Asset Management has applied for an ETF that will track the top ten cryptocurrencies.
In the past, the SEC has resisted approving such products because of the fear that they put individual traders at risk. The three organizations claim that their ETFs will address the concerns raised by the SEC.
The BTC/USD pair is now trading at $8290. This price is above the 50 and 100-day moving averages. It is also an important price because it is above the important resistance level of $8,000. As the good news for Bitcoin continues, the pair is likely to continue moving higher. However, traders should be cautious because as the news fades, the pair could potentially fall back to the $7290 level. This is the 38.2% Fibonacci Retracement level and the 50-day EMA level.
