Bitcoin price climbed back above $91,000 on Tuesday, extending a sharp rally as Wall Street institutions deepen their push into the digital asset.
The Bitcoin price was trading at $91,089 at press time, up 8% over the past 24 hours. Trading volume rose to $78 billion, marking one of the strongest sessions in the past month.
The Bitcoin price is now just above its 7-day high of $89,966 and remains 7% above last week’s low of $83,989. The asset’s market cap is $1.79 trillion, up 5% on the day as new institutional flows hit the market.
Momentum reversed sharply in the early morning session. BTC burst through the $90,000 level after holding key weekend support zones.
The upswing comes at a time when major banks and brokerages – long reluctantly – are finally opening the floodgates to regulated Bitcoin exposure.
Banks and Wall Street influence the Bitcoin price
Bank of America is making its most aggressive move into digital assets yet. The bank will now allow its 15,000 wealth advisors to recommend a 1%-4% crypto allocation, a dramatic shift that brings one of the nation’s largest institutions squarely into the Bitcoin ETF era.
The change will take effect on January 5, when the bank’s chief investment officer begins formal research coverage of four leading Bitcoin ETFs: Bitwise BITB, Fidelity FBTC, Grayscale Bitcoin Mini Trust and BlackRock IBIT
Until now, advisors were barred from discussing Bitcoin unless the client initiated the conversation. That firewall is now gone.
Chris Hyzy, CIO of Bank of America Private Bank, said the bank is taking a “measured” approach, framing crypto as a thematic innovation play only suitable through regulated products. Conservative investors are expected to lean toward the 1% range, while higher-risk clients may approach 4%.
Bank of America’s move brings it in line with peers that have already changed. Morgan Stanley recommended a 2%-4% Bitcoin allocation in October. BlackRock has also argued that 1%-2% in BTC improves long-term portfolio efficiency.
Meanwhile, another major bank holdout turned straight. Vanguard, the second largest asset manager in the world, will begin allowing Bitcoin and crypto-linked ETFs and mutual funds on its platform starting today. More than 50 million brokerage clients will now gain access to crypto exposure for the first time.
The move is a major reversal for Vanguard, which for years called Bitcoin too speculative for long-term portfolios.
Bitcoin Price Analysis: Bulls Fight Back As Analysts Eye $75,000
Price action is turning significantly higher today, but the broader picture remains tense. Bitcoin price has been in a two-month downtrend since peaking above $126,000 in October. The asset fell nearly 30% before finding support between $83,800 and $84,000, a zone traders repeatedly defended over the past week.
Last month’s close was bearish. November produced a large red monthly candle, erasing gains from April to June and confirming a bearish MACD cross on the monthly chart – a bullish signal that historically precedes weak momentum for several months.
Key levels now become clearer on the chart. Bitcoin price faces immediate resistance at $91,400, followed by $93,000 and $94,000. There is also major resistance between $98,000 and $103,000, which remains a major ceiling for the market.
Bulls managed to push the price above $90,000 today, but they still face strong overhead pressure throughout the $91,400-$94,000 zone.
On the downside, support is first at $87,000, which matches the 0.146 Fibonacci level, followed by $84,000. Shown below are deeper supports at $75,000 and the wider $69,000-$72,000 range. The next major support beyond that is near $57,700.
If BTC loses $84,000 again with momentum, analysts from Bitcoin Magazine warn that the path to $75,000 will open quickly.
The Federal Reserve’s meeting on 9-10 December looms large. Markets are pricing in an 80%+ chance of a 25 bps rate cut – a move that historically supports risk assets. However, a break could trigger another selling wave.
At the time of writing, the bitcoin price is trading at $91,039.