The stubborn bulls are firmly back in the saddle, the price of Bitcoin has risen $10,000 in just three days.
Bitcoin refuses to ‚die‘ and reaches $40,000 just three days after the fallMARKET
Bitcoin (BTC) rose higher today, January 14, reaching $40,000 at Coinbase amid new evidence of major new exchanges purchases.
weekly price candles at BTC/USD (Coinbase). Source: Tradingview
BTC price rises $10,000 in three days
Data from Cointelegraph Markets and TradingView tracked the BTC/USD. The pair delivered interesting surprises during Thursday’s trading, with a high of over 17% in 24 hours.
The rise is the latest sign of a rise coming from the Bitcoin price action, which a few days ago was concentrated at levels not far above $30,000.
The $40,000 price revision came hours after BTC/USD hit a crucial $38,000 resistance zone.
„This needs to be reversed. If it does, we will be looking forward to new highs. Otherwise, there is likely to be further consolidation,“ Cointelegraph Markets analyst Michaël van de Poppe summarized in a tweet.
Others were already optimistic beforehand. Tyler Winklevoss, co-founder of Exchange Gemini, referred to several press reports of a Bitcoin crash, which fell to $30,250 earlier in the week. He told Twitter followers:
„They said that #Bitcoin died on Monday but is now over 37,000. Don’t listen to the noise, keep the focus“.
„Did the no-coiners really think #Bitcoin wouldn’t recover? This is the year of Metal Bull. $100,000 is inevitable,“ added Blockstream’s head of strategy, Samson Mow.
Stimulate and buy-in of Bitcoin’s bulls
The loss of bear control complements cautious sentiment about the US dollar, as President-elect Joe Biden is expected to announce a new stimulus package for the supposedly trillion US dollars and personal stimulus checks of US$2,000 for Americans eligible for aid.
„I think the positioning on risky assets is becoming a concern, so there may be a squeeze on the dollar in the short term,“ Shusuke Yamada, chief Japanese exchange strategist at the Bank of America in Tokyo, told Reuters of the US dollar outlook.
„I am focusing on the gradual weakness of the dollar in 2021.
The US dollar index (DXY), with which Bitcoin traditionally shows inverse correlation, continued its upward march the day before Washington’s announcement.
Graph of the output flow of the Bitcoin exchanges. Source: CryptoQuant
Accompanying this increase was a similar recovery in the flow of Bitcoin exchanges. As noted by the CryptoQuant on-chain analysis facility, a single hour on Thursday saw „unusual“ flows from three major trading platforms, indicating that mass buying had occurred.
Binance led the interest, with 6,051 BTC ($233 million) withdrawn during that time, followed by BitMEX with 951 BTC ($37 million).
„If it is an OTC deal, it would be a bullish sign while institutional investors are buying.
„Binance sent BTC to some unknown portfolios. These transactions could be related to internal transfers or OTC deals,“ CryptoQuant CEO Ki Young Ju told Cointelegraph in private comment.
As reported by the Cointelegraph, similar spikes in stock market exit occurred during recent upward price trends.