More and more institutional investors are looking to adopt the largest digital asset as a viable long-term investment
Over the weekend, bitcoin staged an impressive bounce from nearly two-week lows in the $17,500 area. Early on Monday, BTCUSD tried to extend the recovery but bumped into local resistance ahead of the $19,400 figure. As of writing, the pair was unchanged for the day, having settled marginally above the $19,000 level.
The fact that buyers reemerged on the recent downside correction and prevented the leading digital currency from a deeper retreat may signal its readiness to resume the rally and challenge fresh long-term highs after a pause.
As more and more institutional investors are looking to adopt the largest digital asset as a viable long-term investment, its long-term outlook continues to improve. Of note, the banking giant JP Morgan Chase noted in its latest statement that the adoption of bitcoin by institutional investors has only begun. Furthermore, as adoption becomes mainstream, institutions are likely to continue buying BTC in the coming years.
In the short term, the technical picture for the leading cryptocurrency by market capitalization remains positive as well. BTCUSD managed to hold above the $17,500 area during the recent correction and has reclaimed the 20-DMA as support in recent trading, suggesting the bulls may be ready for another attack.
Now, the prices need to hold above the $19,000 figure on a daily closing basis in order to extend the ascent and challenge the $20,000 psychological level eventually. On the four-hour timeframes, bitcoin has settled well above the key moving averages while the RSI has corrected from the overbought territory and pointing north again, suggesting upside risks will likely persist in the immediate term. On the downside, the nearest support now arrives at $18,650 where the mentioned 20-daily moving average lies. In a wider picture, significant support is expected at $16,200.
