Even amid continued volatility in the S&P 500, which is actually nearing record highs per the CBOE’s volatility index (VIX), Bitcoin has continued to push higher and higher.
On Thursday, a day that saw leading stocks in America fall by around 2% to 5% apiece, Bitcoin rallied 3% higher, rallying from $8,900 to as high as $9,170.
Prices have since settled around $9,100, though analysts believe the asset has room to rally to the upside.
Case in point: data shared by leading crypto exchange Binance on Thursday suggests that the traders of its Bitcoin-to-Tether USDT contract are mostly long, with 67.61% of “top traders” (top 20% by balance) betting on the leading cryptocurrency heading higher.
Not to mention, all accounts on Binance’s futures platform have an aggregate long-to-short ratio of 2.20, suggesting the majority is betting on BTC heading higher in the coming days.
Binance Futures traders are currently Long $BTC/USDT overall on the daily time frame.
"Top traders" are defined as the top 20% of traders by margin balance.
Trade on #BinanceFutures with up to 125x leverage here:
— Binance (@binance) March 5, 2020
But what is convincing so many investors that BTC is ready to rally even further than it already has over the past few days?
Positive Technical Trend Intact for Bitcoin
Analyst Fractalwatch recently noted that two key indicators on the daily chart suggest that BTC has room to run; more specifically, the MACD and the Stochastic Relative Strength Index are curved higher and have room to rally to the upside, which could support a multi-percent move higher.
That’s not all. SmartContracter, the cryptocurrency trader who said that Bitcoin would bottom in 2018 at $3,200, recently noted that he thinks “Litecoin may have bottomed,” adding that the leading altcoin is likely preparing to take on new yearly highs.
SmartContracter’s analysis is relevant for BTC because LTC has long acted as a sort of bellwether for the rest of the market, rallying prior to Bitcoin and its ilk, and vice-versa. The implication here: if Litecoin bottomed this weekend, so did BTC.
The Legalization of the Industry: Bullish
Not to beat a dead horse, but sentiment on Crypto Twitter has been buoyed over the past few days by positive regulatory rulings from the authorities in some of Bitcoin’s largest markets.
Namely, a Wednesday ruling from India’s Supreme Court reversed the anti-crypto restrictions imposed on the industry by RBI. This move allows banks to facilitate banking transactions with industry entities once again, “removing a major hurdle for the development of the sector,” as put by Reuters.
Indeed, this ruling should allow Bitcoin exchanges to once again offer their services to 1.3 billion Indians, which were effectively cut off from allocating fiat to the industry for over a year due to the ban in place, which forced many local exchanges and ATM operators to shutter operations.
This was followed up by South Korea, whose South Korean National Assembly just passed legislation that will install a comprehensive framework for the regulation of cryptocurrencies. Although some privacy-minded individuals have worried that this will result in an uptick in AML and KYC procedure with South Korean exchanges, many say that this legitimizes the industry, giving Bitcoin and other digital assets a higher chance of seeing South Korean investment in the coming years.
Economist and crypto commentator Alex Krüger wrote on the matter:
This is still very bullish. Up to now, Korean banks were not interested in doing KYC/AML for crypto, so exchanges had a hard time onboarding clients, and crypto in Korea was sort of dead. This will change now.