The BTC to GBP pair rose by more than 5% today, continuing an upward rally that started yesterday. The pair is up by 15% this month and up by 77% since it bottomed at $3310 in March.
As I wrote a while ago, there was no major catalyst that pulled investors back to Bitcoin. Looking at the pair, the likely reason why it jumped today is because of the unwelcome services and composite PMI data from the UK. As we wrote earlier, the UK’s PMI data declined to a record low in March as most of the country remained at home. The weak PMI data was the worst ever recorded since the number started to be recorded in 1968.
Another catalyst is the fact that investors are starting to anticipate halving, which will happen between March and June. The process reduces the number of blocks awarded to miners by half. By so doing, the supply of Bitcoin is reduced, which in theory leads to higher prices. In the past, BTCGBP price has risen shortly and after halving is done.
In addition, market participants believe that BTC was created for a moment such as this. The currency was created in a time when trust in central banks was at a historic low. Today, central banks, including the Bank of England (BOE) has accelerated printing money. This is creating a conducive environment for cryptocurrency.
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BTC to GBP Technical Analysis
The BTCGBP pair started rising on March 30, when it was trading at 4,708. The pair has since then made a series of higher highs and higher lows. The pair is now trading above the 25-day and 50-day exponential moving averages while the average directional index is above 50. The pair will likely continue rising, with the next target being the yesterday’s high of 5,846.
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