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- Bitcoin has established a strong support around $30,000 and is looking for a retest of $40,000 in the near term.
- Institutions continue to accumulate BTC and remain a determining factor in the bull run.
Bitcoin (BTC) price has awakened from its slumber and is moving rapidly towards $40,000. With the price action of the last 2 days, the bullish sentiment seems to be back in full force and analysts are preparing for a retest of all-time highs sitting on the institutional investment rocket.
At the time of publication, Bitcoin’s price stands at $37,418 with gains of 4.87% in the last 24 hours. On the weekly and monthly charts, BTC is posting gains of 24.11% and 19.90% respectively. The market capitalization is just below $700 billion.
Crypto trader Josh Rager has been highly bullish in his latest analysis on Bitcoin. “The price looks good,” Rager said after Bitcoin held the support zone between $30,000 and $32,000 for several weeks. The trader expects BTC to close its weekly candle above $38,000 and told investors that the latest drop was their opportunity to buy the dip.
On higher time frame, weekly chart – price looks good for Bitcoin. BTC sustained above $32k for multiple weeks and all dips below $30k have been bought up. Putting in a higher-high candle and weekly close above $38ks would be quite bullish. That was your 30% dip to buy.
CryptoQuant’s CEO Ki-Young Ju shared eye-opening data on market behavior. Ju agrees with Rager in stating that $30,000 was the bottom for BTC price and gave 3 bullish indicators for the Bitcoin rally: no increase in miner selling pressure, increase in stablecoin deposits and increase in Coinbase outflow.
Ju has repeatedly stated that the latter indicator is key to understanding the market trend. Most institutions make their BTC purchases through Coinbase’s Pro service, and the entry of the giant Guggenheim Partners may have contributed to the increase in this metric.
There is speculation that the investment giant bought $500 million in Bitcoin with an average price of $32,000, after filing a notice with the U.S. Securities and Exchange Commission (SEC), as CNF reported earlier. Guggenheim’s investment may thus have reversed the trend.
Next stop $50,000? Bloomberg’s bullish prediction for Bitcoin
On the other hand, Bloomberg Intelligence’s latest report on Bitcoin price is along the bullish lines. Senior strategist Mike McGlone determines that Bitcoin has increased its support level from $20,000 to $30,000 and notes that the next resistance level is at $50,000, as shown in the chart below.
Institutions have strengthened the narrative that BTC could be a global reserve asset and their participation has reduced volatility in the cryptocurrency. In parallel, lower interest rates, rising U.S. debt, and quantitative easing will be tailwinds for the price of the benchmark cryptocurrency.
PayPal’s success story with Bitcoin
By the end of the first quarter of 2021, PayPal could be the most important institution for Bitcoin. In its latest earnings report, the company revealed that it will allow its users to use their cryptocurrency balances as a funding source to make purchases at its nearly 30 million merchant partners. Another highly bullish piece of news that could continue to fuel Bitcoin is the expansion of PayPal’s crypto services to its international users by mid-year.
As reported by CNF, the license that PayPal has acquired to operate its crypto service obliges the company to custody Bitcoin at a 1-to-1 parity with the purchase its customers make on the platform. More users purchasing the cryptocurrency will drive an increase in buying pressure for BTC in the market and a rise in its price.
