Bitcoin prices rose above $91,000 on Tuesday, extending a strong rebound as Wall Street financial institutions ramped up their efforts in the digital asset.
Bitcoin price is trading at $91,089 at the time of writing, up 8% in the past 24 hours. Trading volume soared to $78 billion, making it one of the strongest in the past month.
Bitcoin price is currently just above its seven-day high of $89,966 and remains 7% above last week's low of $83,989. The asset's market capitalization reached $1.79 trillion, rising 5% in a day as new institutional money poured into the market.
Momentum quickly reversed in the early morning session. BTC has broken through the $90,000 level after holding the key support zone over the weekend.
The rebound comes at a time when major banks and brokerages are finally opening the door to regulated Bitcoin exposure after years of hesitation.
Banks and Wall Street influence Bitcoin price
Bank of America is making its most aggressive move into digital assets to date. The bank will now allow its 15,000 wealth advisors to recommend crypto allocations of 1% to 4%, a dramatic change that brings one of the nation's largest financial institutions fully into the Bitcoin ETF era.
The changes will take effect on January 5, when the bank's top investment arm will begin formal scrutiny of four major Bitcoin ETFs: Bitwise BITB, Fidelity FBTC, Grayscale Bitcoin Mini Trust, and BlackRock IBIT.
Previously, advisors were prohibited from discussing Bitcoin unless their client initiated the conversation. That firewall is gone now.
Bank of America Private Bank Chief Information Officer Chris Heisey said the bank is taking a “cautious” approach, positioning cryptocurrencies as a thematic innovation strategy that is appropriate only through regulated products. Conservative investors are expected to lean into the 1% range, while high-risk customers may approach 4%.
Bank of America's move will align with other companies in the industry that have already made the transition. Morgan Stanley recommended a 2% to 4% Bitcoin allocation in October. BlackRock also claims that 1% to 2% of BTC will improve long-term portfolio efficiency.
Meanwhile, another big bank holdout has just been reversed. Starting today, Vanguard, the world's second-largest asset manager, will begin allowing ETFs and mutual funds linked to Bitcoin and cryptocurrencies on its platform. More than 50 million brokerage customers will have access to cryptocurrency exposure for the first time.
The move is a major reversal for Vanguard, which has long argued that Bitcoin is too speculative for long-term portfolios.
Bitcoin Price Analysis: Bulls fight back as analysts focus on $75,000
Although today's price trend has sharply turned upward, the overall situation remains tense. Bitcoin prices have been on a downward trend for two months since exceeding $126,000 in October. The asset fell nearly 30% before finding support between $83,800 and $84,000, a line that zonal traders repeatedly defended over the past week.
Last month's closing price was bearish. November produced a large red candlestick on the monthly chart, erasing the gains from April to June and confirming a bearish MACD cross on the monthly chart. This is historically a high timeframe signal that precedes several months of weak momentum.
Key levels are becoming more clear on the chart. Bitcoin price faces immediate resistance at $91,400, followed by $93,000 and $94,000. There is also significant resistance between $98,000 and $103,000, which remains a major upper bound for the market.
The bulls managed to push the price above $90,000 today, but they still face strong overhead pressure across the $91,400 to $94,000 zone.
On the downside, support is first at $87,000, which coincides with the 0.146 Fibonacci level, followed by $84,000. Below that, deeper support appears at $75,000 and a broader range between $69,000 and $72,000. The next major support above it is near $57,700.
Analysts at Bitcoin Magazine warn that if BTC loses momentum and loses $84,000 again, the path to $75,000 will be immediately clear.
The Federal Reserve's December 9-10 meeting is fast approaching. The market has priced in more than 80% of the probability of a 25bps rate cut, a move that has historically supported risk assets. However, a pause could trigger a new wave of selling.
At the time of this writing, Bitcoin price is trading at $91,039.
This post, Bitcoin price rises above $91,000 as Wall Street ramps up Bitcoin buying plans, originally appeared on Bitcoin Magazine and was written by Mika Zimmerman.
