The price of Bitcoin (BTC) has been on a parabolic bull run since the fall of 2020 that accelerated in December, and by the first week of January, the market value of Bitcoin …
The price of Bitcoin (BTC) has been on a parabolic bull run since the fall of 2020 that accelerated in December, and by the first week of January, the market value of Bitcoin peaked at an all-time high of $41,940.
As new traders enter the market, a number of indicators and market analysts have suggested that the price of BTC is well-positioned for even more growth in the short term.
Three key factors that suggest Bitcoin’s rally is sustainable are the growing institutional demand, the amount of stablecoins on exchanges and the lack of sell-side pressure.
Institutional demand is growing
According to data from Grayscale Investments, the total assets under management (AUM) of its crypto investment funds have reached $24.5 billion. This is a sign of the rapidly increasing institutional demand for cryptocurrencies.
The Grayscale Bitcoin Trust (GBTC) alone holds $20.2 billion in assets under management. In the past week, the GBTC has seen its largest weekly candle since its inception in 2013, indicating that institutional demand is rapidly increasing.
The GBTC is an over-the-counter (OTC) fund that is not available on public exchanges, so the growing institutional appetite for Bitcoin is not reflected in the price of BTC on spot exchanges.
The amount of stablecoins on exchanges is increasing
The amount of stablecoins on exchanges is also increasing, which shows that sidelined capital is moving back into the cryptocurrency market.
When the price of Bitcoin was consolidating under $20,000, the amount of stablecoins on exchanges was hovering at around $20 billion. In the past month, the amount of stablecoins on exchanges has increased by 100% to $40 billion.
This trend shows that sidelined capital is starting to flow back into the cryptocurrency market, as traders are becoming more comfortable with the current price levels of major cryptocurrencies.
The lack of sell-side pressure
The combination of the growing institutional demand for Bitcoin and the increase in stablecoins on exchanges suggests that there is a lack of sell-side pressure in the market.
This means that there is a smaller number of investors willing to sell their BTC at the current price levels, which reduces the overall selling pressure on Bitcoin.
The lack of sell-side pressure is a positive factor because it means that there is a smaller chance of a deep correction occurring, which could potentially lead to a more sustainable rally.
In the short term, the main resistance levels for Bitcoin are $36,000 and $40,500. If Bitcoin breaks out of $40,500, it would likely enter price discovery, which could lead to a more explosive rally in the medium term.
The $36,000 level is important because it marked the top of the rally in January 2018, when the price of Bitcoin peaked at around $41,900 on Binance.
If Bitcoin breaks out of $36,000, it would confirm a new higher high and continue to make higher lows, which is the definition of a bull trend.
The $40,500 level is also important because it is the 1.618 Fibonacci level of the most recent correction. This means that if Bitcoin breaks out above $40,500, it would confirm that the entire correction was just a pullback and not a trend reversal.
In the short term, the key support levels are $34,000 and $30,000. If Bitcoin falls below $30,000, it would indicate that the market is overvalued at the current price level and that a deeper correction is likely to occur.
However, the current market structure of Bitcoin suggests that the rally is sustainable, as there is a lack of sell-side pressure and growing institutional demand.
BIO: Michael van de Poppe is a full-time trader from the Amsterdam Stock Exchange and a former ETF broker. He also serves as a Crypto Market Analyst at the website of the Dutch Financial Times, where he covers various cryptocurrencies, blockchain applications, and the latest trends in the market.
Bitcoin (BTC) has been on a parabolic bull run since the fall of 2020 that accelerated in December, and by the first week of January, the market value of Bitcoin peaked at an all-time high of …
Bitcoin (BTC) has been on a parabolic bull run since the fall of 2020 that accelerated in December, and by the first week of January, the market value of Bitcoin peaked at an all-time high of $41,940.
As new traders enter the market, a number of indicators and market analysts have suggested that the price of BTC is well-positioned for even more growth in the short term.
Three key factors that suggest Bitcoin’s rally is sustainable are the growing institutional demand, the amount of stablecoins on exchanges, and the lack of sell-side pressure.
Institutional demand is growing
According to data from Grayscale Investments, the total assets under management (AUM) of its crypto investment funds have reached $24.5 billion. This is a sign of the rapidly increasing institutional demand for cryptocurrencies.
The Grayscale Bitcoin Trust (GBTC) alone holds $20.2 billion in assets under management. In the past week, the GBTC has seen its largest weekly candle since its inception in 2013, indicating that institutional demand is rapidly increasing.
The GBTC is an over-the-counter (OTC) fund that is not available on public exchanges, so the growing institutional appetite for Bitcoin is not reflected in the price of BTC on spot exchanges.
The amount of stablecoins on exchanges is increasing
The amount of stablecoins on exchanges is also increasing, which shows that sidelined capital is moving back into the cryptocurrency market.
When the price of Bitcoin was consolidating under $20,000, the amount of stablecoins on exchanges was hovering at around $20 billion. In the past month, the amount of stablecoins on exchanges has increased by 100% to $40 billion.
This trend shows that sidelined capital is starting to flow back into the cryptocurrency market, as traders are becoming more comfortable with the current price levels of major cryptocurrencies.
The lack of sell-side pressure
The combination of the growing institutional demand for Bitcoin and the increase in stablecoins on exchanges suggests that there is a lack of sell-side pressure in the market.
This means that there is a smaller number of investors willing to sell their BTC at the current price levels, which reduces the overall selling pressure on Bitcoin.
The lack of sell-side pressure is a positive factor because it means that there is a smaller chance of a deep correction occurring, which could potentially lead to a more sustainable rally.
In the short term, the main resistance levels for Bitcoin are $36,000 and $40,500. If Bitcoin breaks out of $40,500, it would likely enter price discovery, which could lead to a more explosive rally in the medium term.
The $36,000 level is important because it marked the top of the rally in January 2018, when the price of Bitcoin peaked at around $41,900 on Binance.
If Bitcoin breaks out of $36,000, it would confirm a new higher high and continue to make higher lows, which is the definition of a bull trend.
The $40,500 level is also important because it is the 1.618 Fibonacci level of the most recent correction. This means that if Bitcoin breaks out above $40,500, it would confirm that the entire correction was just a pullback and not a trend reversal.
In the short term, the key support levels are $34,000 and $30,000. If Bitcoin falls below $30,000, it would indicate that the market is overvalued at the current price level and that a deeper correction is likely to occur.
However, the current market structure of Bitcoin suggests that the rally is sustainable, as there is a lack of sell-side pressure and growing institutional demand.
BIO: Michael van de Poppe is a full-time trader from the Amsterdam Stock Exchange and a former ETF broker. He also serves as a Crypto Market Analyst at the website of the Dutch Financial Times, where he covers various cryptocurrencies, blockchain applications, and the latest trends in the market.
Bitcoin (BTC) has been on a parabolic bull run since the fall of 2020 that accelerated in December, and by the first week of January, the market value of Bitcoin peaked at an all-time high of $41,940.
As new traders enter the market, a number of indicators and market analysts have suggested that the price of BTC is well-positioned for even more growth in the short term.
Three key factors that suggest Bitcoin’s rally is sustainable are the growing institutional demand, the amount of stablecoins on exchanges, and the lack of sell-side pressure.
Institutional demand is growing
According to data from Grayscale Investments, the total assets under management (AUM) of its crypto investment funds have reached $24.5 billion. This is a sign of the rapidly increasing institutional demand for cryptocurrencies.
The Grayscale Bitcoin Trust (GBTC) alone holds $20.2 billion in assets under management. In the past week, the GBTC has seen its largest weekly candle since its inception in 2013, indicating that institutional demand is rapidly increasing.
The GBTC is an over-the-counter (OTC) fund that is not available on public exchanges, so the growing institutional appetite for Bitcoin is not reflected in the price of BTC on spot exchanges.
The amount of stablecoins on exchanges is increasing
The amount of stablecoins on exchanges is also increasing, which shows that sidelined capital is moving back into the cryptocurrency market.
When the price of Bitcoin was consolidating under $20,000, the amount of stablecoins on exchanges was hovering at around $20 billion. In the past month, the amount of stablecoins on exchanges has increased by 100% to $40 billion.
This trend shows that sidelined capital is starting to flow back into the cryptocurrency market, as traders are becoming more comfortable with the current price levels of major cryptocurrencies.
The lack of sell-side pressure
The combination of the growing institutional demand for Bitcoin and the increase in stablecoins on exchanges suggests that there is a lack of sell-side pressure in the market.
This means that there is a smaller number of investors willing to sell their BTC at the current price levels, which reduces the overall selling pressure on Bitcoin.
The lack of sell-side pressure is a positive factor because it means that there is a smaller chance of a deep correction occurring, which could potentially lead to a more sustainable rally.
In the short term, the main resistance levels for Bitcoin are $36,000 and $40,500. If Bitcoin breaks out of $40,500, it would likely enter price discovery, which could lead to a more explosive rally in the medium term.
The $36,000 level is important because it marked the top of the rally in January 2018, when the price of Bitcoin peaked at around $41,900 on Binance.
If Bitcoin breaks out of $36,000, it would confirm a new higher high and continue to make higher lows, which is the definition of a bull trend.
The $40,500 level is also important because it is the 1.618 Fibonacci level of the most recent correction. This means that if Bitcoin breaks out above $40,500, it would confirm that the entire correction was just a pullback and not a trend reversal.
In the short term, the key support levels are $34,000 and $30,000. If Bitcoin falls below $30,000, it would indicate that the market is overvalued at the current price level and that a deeper correction is likely to occur.
However, the current market structure of Bitcoin suggests that the rally is sustainable, as there is a lack of sell-side pressure and growing institutional demand.
BIO: Michael van de Poppe is a full-time trader from the Amsterdam Stock Exchange and a former ETF broker. He also serves as a Crypto Market Analyst at the website of the Dutch Financial Times, where he covers various cryptocurrencies, blockchain applications, and the latest trends in the market.
Bitcoin (BTC) has been on a parabolic bull run since the fall of 2020 that accelerated in December, and by the first week of January, the market value of Bitcoin peaked at an all-time high of $41,940.
As new traders enter the market, a number of indicators and market analysts have suggested that the price of BTC is well-positioned for even more growth in the short term.
Three key factors that suggest Bitcoin’s rally is sustainable are the growing institutional demand, the amount of stablecoins on exchanges, and the lack of sell-side pressure.
Institutional demand is growing
According to data from Grayscale Investments, the total assets under management (AUM) of its crypto investment funds have reached $24.5 billion. This is a sign of the rapidly increasing institutional demand for cryptocurrencies.
The Grayscale Bitcoin Trust (GBTC) alone holds $20.2 billion in assets under management. In the past week, the GBTC has seen its largest weekly candle since its inception in 2013, indicating that institutional demand is rapidly increasing.
The GBTC is an over-the-counter (OTC) fund that is not available on public exchanges, so the growing institutional appetite for Bitcoin is not reflected in the price of BTC on spot exchanges.
The amount of stablecoins on exchanges is increasing
The amount of stablecoins on exchanges is also increasing, which shows that sidelined capital is moving back into the cryptocurrency market.
When the price of Bitcoin was consolidating under $20,000, the amount of stablecoins on exchanges was hovering at around $20 billion. In the past month, the amount of stablecoins on exchanges has increased by 100% to $40 billion.
This trend shows that sidelined capital is starting to flow back into the cryptocurrency market, as traders are becoming more comfortable with the current price levels of major cryptocurrencies.
The lack of sell-side pressure
The combination of the growing institutional demand for Bitcoin and the increase in stablecoins on exchanges suggests that there is a lack of sell-side pressure in the market.
This means that there is a smaller number of investors willing to sell their BTC at the current price levels, which reduces the overall selling pressure on Bitcoin.
The lack of sell-side pressure is a positive factor because it means that there is a smaller chance of a deep correction occurring, which could potentially lead to a more sustainable rally.
In the short term, the main resistance levels for Bitcoin are $36,000 and $40,500. If Bitcoin breaks out of $40,500, it would likely enter price discovery, which could lead to a more explosive rally in the medium term.
The $36,000 level is important because it marked the top of the rally in January 2018, when the price of Bitcoin peaked at around
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