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UK Newspaper The Independent Covers Bitcoin’s Mid-Pandemic Bull Run

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Cryptocurrency has hit the headlines in the U.K., with The Independent reporting on Bitcoin’s recent yearly highs above $12,000.

An Aug. 18 report shows the major news publication, which has more than 24 million subscribers, covering the mid-pandemic bull run in the cryptocurrency markets.

“The latest gains mean the price of Bitcoin has nearly trebled since March, despite a global economic slowdown caused by the coronavirus pandemic,” the article stated.

“Other cryptocurrencies have mirrored Bitcoin’s fortunes, with Ether (Ethereum) rising from just above $100 in March to today’s price of $430.”

The Independent compared Bitcoin with gold as safe haven assets to which investors turn in “times of economic uncertainty.” The news outlet also cited business intelligence firm MicroStrategy purchasing $250 million in BTC to use as its primary reserve asset.

Crypto going mainstream

Bitcoin’s price has grown substantially in 2020 as central banks have pushed many unconventional measures to lessen the economic impact of the pandemic, prompting some companies and figures to reconsider crypto as a legitimate store of value.

In the U.K., Mike Novogratz’s Galaxy Digital printed a full-page cryptocurrency ad in international business newspaper Financial Times on Aug. 14, telling readers to “invest in Bitcoin” during these “uncertain times.” Richard Heart’s controversial HEX token also has ads plastered across London public transportation, in newspapers, and during soccer games.

Grayscale Investments released a 30-second spot on business and finance cable TV channels starting on Aug. 10, to which many viewers responded negatively on social media.



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3 reasons why Bitcoin price has not been able to rally back above $40K

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The ongoing story for the past couple of months in the cryptocurrency market has been confusion on whether Bitcoin (BTC) is destined for another leg down or is finally ready to break out toward new highs.

Bitcoin’s price history and data from previous corrections suggest that the current struggles for the top cryptocurrency could persist for a little bit longer due to the strengthening dollar, the possibility of decreasing economic stimulus and a slew of technical factors connected to Bitcoin’s price action.

A strong dollar threatens Bitcoin’s recovery

According to data from Delphi Digital, one of the biggest factors placing strain on risk assets around the globe is the strengthening U.S. dollar which appears to be attempting a trend reversal after falling below 90 in late May.

DXY 1-day chart. Source: TradingView

Rising dollar strength put a halt to the year-long uptrend in the 10-year US Treasury yield which is also a reflection that the economic expansions seen in the first half of 2021 are beginning to lose steam and there is a threat that a new wave of Covid-19 infections threatening the global economic recovery.

Fractals and the Death Cross suggest the correction is not over yet

The short-term outlook for Bitcoin remains bearish as previous instances of the “Death Cross,” which appeared on BTC’s chart in late June, have been followed by a corrective period that can last for nearly a year.

Bearish crossover of the 50 day and 200-day MA. Source: Delphi Digital

According to the analysts at Delphi Digital, the 12-month moving average is being tested as support, and a dip below this level would signal further downside for BTC price.

Bitcoin price testing the12-month moving average. Source: Delphi Digital

The 12-month moving average has been a key support level for Bitcoin historically, so how the price performs near this level could dictate whether the current uptrend remains intact.

Related: El Salvadorians take to the streets to protest Bitcoin law

Overall, caution is warranted for traders because low volumes have historically led to higher volatility when fewer open bids can lead to rapid price fluctuations.

As explained by Kevin Kelly, a certified financial analyst at Delphi Digital, “the short-term outlook turns quite a bit more bearish if and when we break those key levels” near $30,000.

Kelly said:

“I don’t necessarily think that we will see as nearly as significant of a drawdown as we did in say, post-December 2017, early 2018, and into the end of that year. But I do think, just given the structure of the market, that we could potentially be in for a bit more short-term volatility and potentially some more headwinds here, in the near term.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.