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- Both Bitcoin’s technical analysis and on-chain data are overwhelmingly bullish, according to analysts.
- The BTC price has regained traction due to trading by whales and bullish news about new institutional investors.
The Bitcoin price has surged above the $38,000 USD mark again a few hours ago and is well on its way to test the $40,000’s mark. This is currently the unanimous opinion of most well-known and popular crypto analysts on Twitter. One of them is yTedd. The trader stated that Bitcoin remains above the diagonal resistance marked at $32,000 and the Ichimoku cloud. Therefore, he concluded that the cryptocurrency is heading towards $50,000.
https://twitter.com/TeddyCleps/status/1357435102792478721
“Trader il Crypto Capo” agrees with yTedd. He shared the chart below about the massive inflows of stablecoins on crypto exchanges and claimed that bears should be “scared”. His claim is also backed up the other side of the supply/demand theory. Data from Glassnode shows that Bitcoin supply on exchanges is at a 2.5-year low. This further strengthens the case for a Bitcoin supply crisis.
Bears should be scared. pic.twitter.com/D0iBOHGP2u
— il Capo Of Crypto (@CryptoCapo_) February 4, 2021
In addition to the above, Glassnode records a “surprising” increase in the number of Bitcoin whales. Since the beginning of the year, at least 200 new addresses that have more than 1,000 BTC in their accounts have been created. As the graph below shows, more than 2,000 whales have emerged in recent months and continue to grow.
Institutional participation fuels Bitcoin price
The data presented above shows that institutions continue to accumulate BTC and appear ready to test the next resistance for BTC price. Bloomberg Intelligence yesterday marked the next resistance at $50,000 with support in the $30,000 area.
As derivatives trader Cantering Clark noted, institutional participation may have increased following the company’s MicroStrategy conference with more than 20,653 registered participants. After the conference, WhaleAlert reported numerous large transactions from Coinbase to unknown wallets.
https://twitter.com/CanteringClark/status/1357496978784059393
New York Digital Investment Group (NYDIG) CEO Ross Stevens predicted that institutions will invest nearly $25 billion in BTC by the end of 2021. Stevens told MicroStrategy CEO, Michael Saylor:
I didn’t realize there were so many institutions moving so aggressively into this space. I am confident we’ll have over $25 billion of bitcoin. I just got this order book. I’m not guessing, I see what’s happening
In addition to the MicroStrategy conference, the last few days have seen at least 2 bullish news possibly related to the rally in Bitcoin’s price. First the appointment of pro-bitcoin Senator Cynthia Lummis to the U.S. Banking Commission. In an important year for regulations, Lummis’ influence could be positive for the crypto market.
I came for the store of value. Staying for the censorship resistance. #Bitcoin https://t.co/MpIJbhfKnk
— Cynthia Lummis 🦬 (@CynthiaMLummis) February 2, 2021
The second bullish news which CNF reported on yesterday is that PayPal revealed in its Q4 earnings report that it could allow its U.S. users to use their cryptocurrency balances to make purchases from its 29 million merchant partners by the end of March 2021. By the second quarter of the year, its crypto services are expected to expand to the 300 million users worldwide.
