- Bitcoin has once again marked a new all-time high of $40,300.
- Analysts are divided whether Bitcoin will rise to $50,000 or whether a severe correction will take place before that.
Bitcoin has risen to a new all-time high of $40,300 in the last few hours, directly surpassing the $40,000 mark in its second attempt. In the last 24 hours, Bitcoin has recorded a gain of 3.10% to a price of $38,938. The market capitalization has risen to $715 billion, reaching a higher market capitalization than tech giant Tesla for the first time.
Some industry experts, including Bitcoin trader Josh Rager, continue to be bullish on Bitcoin. Nevertheless, he points out that Bitcoin could continue to rise to the $50,000 mark, but a sharp correction of up to 50% could follow. On the other hand, new heavyweights from the retail sector could enter the market and flood new capital into the market if Bitcoin reaches the psychologically important $50,000 mark.
The people in this market are used to 20 to 30% pullbacks but can they handle a 50%+ pullback
Could shake out a few
$50k + seems like the ideal fomo number to bring in new people
This probably won't happen, but eventually we'll see a multi-week 30%+ pullback
— Josh Rager 📈 (@Josh_Rager) January 8, 2021
“HornHairs” predicts that the BTC price will continue to rise as a 4-hour candle closed green despite a 10.45% drop in price and above $4,000. In his opinion, this is a strong bullish sign, so Bitcoin could also rise above the current all-time high of $40,300.
— HornHairs 🌊 (@CryptoHornHairs) January 7, 2021
Bitcoin trader “yTedd” shared a chart on Twitter that shows the various Fibonacci levels on a 4-year chart. Based on this, he jokingly describes that “it is illegal to sell Bitcoin before the $42,000 mark”. He is thus showing his followers that the next Fibonacci level to be broken is exactly at the level of this price level. In his opinion, a correction could follow after that.
— yTedd (@TeddyCleps) January 8, 2021
According to data from “Big Chonis Trading”, the current bitcoin spot volume remains low compared to previous years. In his opinion, the Bitcoin market has yet to see a major spike in 2021, so an increase in trading volume could follow, and with it, an increase in price. In previous years, Bitcoin has always increased in price when the volume on the spot markets has also increased.
$BTC – keep watching spot volume,
— Big Chonis Trading🍄 (@BigChonis) January 8, 2021
“il Capo Of Crypto” is also bullish on Bitcoin and predicts that Bitcoin will trend sideways in a price range between $35,000 and $45,000 in the coming weeks. Volatility will remain high, so there will be good profit opportunities for traders. Nevertheless, he also points out that a sharp correction of up to 30% could follow.
Potential range between $45k and $35k. Good for altcoins. pic.twitter.com/G8QCRKyEfr
— il Capo Of Crypto (@CryptoCapo_) January 7, 2021
According to prominent trader “CarpeNoctom”, current fundamentals suggest that Bitcoin could rise to $48,000, but after that a major correction will most likely follow. He will realize profits at this price level, as Bitcoin can continue to rise in the long term, but a correction must occur first.
2015 PF + two-year MA multiplier showing resistance confluence from 46k-48k
IF we get there, i'll be selling spot into cash pic.twitter.com/Oojo7HVI8G
— #33kByYesterday (@CarpeNoctom) January 7, 2021
Bitcoin hype driven by institutional investors
As we reported earlier, asset manager Grayscale bought 3 times as many Bitcoins as new ones could be produced in December. Multiple millionaire and fund manager Bill Miller elaborates that PayPal and Square alone are buying all 900 newly mined Bitcoins on behalf of their clients, further increasing the hunger for Bitcoin from these tech giants.
Paypal and Square alone are estimated to be buying on behalf of their customers all of the 900 new bitcoins mined each day.
Miller continues to predict that more and more businesses will invest some of their cash reserves in Bitcoin to protect themselves from the effects of inflation.
If companies decide to diversify some small portion of their cash balances into bitcoin instead of cash, then the current relative trickle into bitcoin would become a torrent.