Bitcoin sets new all-time high again – further rise could be imminent
Bitcoin and the aggregate cryptocurrency market are in another uptrend, with the bulls in full control of the market.
This uptrend follows an intense sell-off last night – the result of incredibly high funding rates on margin trading platforms.
The move lower reset those financing rates and cleared out „late longs“ – setting the stage for a move higher.
One analyst explains in a tweet that this rise came from a flood of OTC buying.
This is a bullish sign, as it suggests that big buyers are still buying Bitcoin – despite its relatively high prices.
Bitcoin and the aggregate cryptocurrency market are caught in the Provit Revolution grips of another uptrend, with Bitcoin rising above $40,000 while the rest of the market follows close on its heels.
This intense surge is simply an extension of the momentum BTC has seen in recent weeks and months – and comes as a combination of retail investor money and institutional capital pours into the markets.
One on-chain analyst comments that recent OTC activity has been on the verge of crossing the $40,000 mark and may indicate that another surge is imminent.
Bitcoin surpasses $40,000, continues uptrend
At the time of writing, Bitcoin (To Buy Bitcoin at Plus 500 Guide) is trading up just under 3% at its current price of $40,500, which is roughly the price at which it has been trading all morning.
It briefly rose to as high as $42,000 before facing some selling pressure that hampered its growth and caused a retracement to $39,000.
Since then it has bounced off that low and is showing some immense signs of strength as the bulls try to push it back towards $41,000.
On-chain analyst: This is what triggered the recent surge in BTC
An on-chain analyst writes in a tweet that Bitcoin’s recent surge came just days after a massive surge in off-exchange buying activity.
He notes that these investors are currently up 24% on their BTC investments.
„If we look at recent Coinbase outflows, possibly OTC trades, I think we can appreciate their PNL. BTC is up 24% since January 2. If you were institutional investors, would you be happy with 24% PNL for bitcoin?“
Whether these types of OTC trades continue to be strong as Bitcoin hits new all-time highs will provide insight into the sustainability of this movement.