To say Bitcoin (BTC-USD) and the broader cryptocurrency market have had an amazing week is an understatement. Over the last week, its bullish performance has led to a 6.77% increase, leading to a new all-time high of $69,324. As the first cryptocurrency, Bitcoin continues to set the stage for a revolutionary form of digital asset, simultaneously embodying both a store of value and a medium of exchange.
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Institutions Continue to Buy Bitcoin
Institutions continue to buy Bitcoin. MicroStrategy’s (NASDAQ:MSTR) recent move to sell $700 million in convertible debt to purchase more Bitcoin speaks volumes of the confidence CEO Michael Saylor (an extremely vocal Bitcoin advocate and investor) has in Bitcoin’s long-term value.
Similarly, spot BTC ETFs continue to show net positive inflows of Bitcoin. BlackRock’s (NYSE:BLK) IBIT, the largest by assets under management, added nearly 20% in value in just one day to $12.2 billion.
The effect Bitcoin has had on the investment community mirrors the profound impact of the first gold ETFs. It’s not an exaggeration to say that Bitcoin is not just part of investment conversations—it’s driving them. As it continues to rise in value and prominence, Bitcoin maintains its position not just as the first cryptocurrency but as a force that has permanently altered the financial landscape.
Bitcoin Technicals Flash a Big Warning Sign
Despite hitting new all-time highs, selling off, and then recovering, bulls have been unable or unwilling to capitalize on Bitcoin’s technical successes. From a time cycle perspective, this is the seventh week in an upswing, a big warning sign from one of the fathers of technical analysis, W.D. Gann.
Gann called his seven-week cycle his ‘Death Zone’. It sounds ominous, and it is. He warned that any instrument moving strongly for seven weeks is likely to pull back or see a trend change. Bulls, bears, and those on the sidelines expect some volatility as the end of the week approaches.
