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  • Most of the tough hurdles are finally behind Bitcoin and now BTC/USD only needs a catalyst for further gains.
  • The current rally according to Tom Lee of Fundstrat is mainly fueled by the input from institutional clients.

Bitcoin gained in value significantly on Wednesday riding on the momentum started earlier in the week. After stepping above $13,000, BTC/USD is holding to the 5.41% gains in the last 24 hours and the 3.5% on the day. The largest digital asset in the market has a market cap of $232 billion and a 24-h exchange trading volume of $26 billion.

The confluence detector tool has the first support for Bitcoin at $13,000 (buyer congestion zone). The various indicators converging at this area range from the previous high 15-mins to the previous high 1-h. Most of the resistance areas that have in the recent past been limiting upward movement are not working as key support including $12,557: Bollinger Band 1-h Middle, SMA 5 1-h, Previous Low 1-h, and the 38.2% Fib level 1-D. The next support target is seen at $12,286, $11,880 and the strong support area at $11,473.

Most of the tough hurdles are finally behind Bitcoin and now BTC/USD only needs a catalyst for a correction above the 2019 highs and extend to new highs above $14,000. Currently the upside is limited by resistance at $13,235, $13,642, $13,777, $13,913 and $14,048.

The current rally according to Tom Lee of Fundstrat is mainly fueled by the input from institutional clients especially hedge funds. Bitcoin is also boosted by investors who are looking to hedge against macroeconomics and fiscal risks.