Apparently, China’s ban only made Bitcoin stronger.
Since bottoming out at $40,790, Bitcoin is now back to $54,486 – and could potentially test its prior high of about $64,859.
All thanks to positive inflows.
“According to the latest Digital Asset Fund Flows Weekly report by CoinShares, institutional investors have continued to increase their exposure to digital currencies. The asset class saw a total of $90 million inflows in the last week, representing the seventh consecutive week of positive inflows,” as reported by Crypto Potato.
Helping, U.S. SEC Chair Gary Gensler says the regulator does not plan to ban cryptocurrencies, noting the U.S. will not follow China’s lead.
That’s all a major catalyst for miners, such as Marathon Digital Holdings (MARA), for example.
“In the third quarter, we increased our bitcoin production by 91% quarter-over-quarter to 1,252 BTC, which increased our total bitcoin holdings to approximately 7,035 BTC,” said Fred Thiel, Marathon’s CEO, as quoted in a company press release.
Even stocks like MicroStrategy Inc. (MSTR) are pushing aggressively higher with Bitcoin. As of August 2021, MSTR held $5.3 billion worth of Bitcoin.
However…
If you missed out on the current run in Bitcoin, miners, and BTC holders, you may get another chance, as Bitcoin gets a bit oversold.
If you pull up a one-year chart of Bitcoin, you can see that momentum is beginning to peak. We can see that with RSI, Money Flow, and Williams’ %R. In fact, the last few times these three indicators aligned in overbought territory, Bitcoin temporarily reverse course shortly after.
We can see that happened in early September 2021, late July 2021, April 2021, February 2021, and at the start of January 2021. The good news is the pullbacks typically don’t last too long, and offer quite a bit of opportunity when the bottom is in place.