Bitcoin has rallied extremely in the past day, from the $ 33,000 region to above $ 37,000 at the time of writing this article. The cryptocurrency is now above USD 37,000 for the first time since the weekend and is up 10% in last day’s trading session.
The cryptocurrency is outperforming altcoins in this move higher. While Bitcoin has gained 10% in last day’s trading session, altcoins such as Ethereum and XRP are up only 3-5%.
The Bitcoin bottom is in?
Analysts think Bitcoin price may bottom out after the correction to $ 30,000 earlier this week, which took many traders by surprise.
Ki Young Ju, CryptoQuant’s chief executive, noted that there was a large amount of buying pressure on spot exchanges in the $ 30,000-32,000 range. This is evidenced by the fact that on the date of the decline, a large amount of capital was outflowing from centralized exchanges, indicating accumulation by large players:
“There are many institutional investors who have bought $ BTC at the 30-32k level. Coinbase’s outflow on January 2 was a three-year high. “
There are many institutional investors who have bought $ BTC at the 30-32k level. Coinbase’s outflow on January 2 was a three-year high.
Speculative bet, but if these guys are behind this bull run, they’ll protect the 30k level. Even if we had a dip, it wouldn’t drop below 28k. pic.twitter.com/3GXLpjyWbp
– Ki Young Ju 주기영 (@ki_young_ju) January 13, 2021
Ki Young Ju suggests that if these “guys are behind this bull run, they will protect the $ 30,000 level.”
Another reason why analysts think Bitcoin price has bottomed out is the extremely high number of liquidations on Sunday and Monday.
More than $ 2.5 billion in crypto asset futures positions were wiped out on that day due to massive downward volatility. Many think that this spike in liquidations, which corresponded to a spike in volume, is a likely sign that Bitcoin and the rest of the crypto asset market are at a turning point.
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Growing
Featured Image from Unsplash Chart from TradingView.com Price Tags: xbtusd, btcusd, btcusdt Bitcoin Passes $37,000 Amid Massive Recovery Rally