After hitting both $27k and $28k on the 27th of December, the price of Bitcoin corrected to $25,800.

Today, we are trading just over $27,000 which makes sense after the monster rally of December that gave us an uptrend of more than 60%.

But interestingly, this rally during the holiday weekend seems to be driven by retail. This demand has been unlike any other ever seen during the holiday periods. “Unprecedented” as put by investor Alistair Milne.

This is an incredibly significant insight. Alistair has been in Bitcoin forever.

Most holiday periods like this see demand fall, I expected it too.

When the opposite occurs it shows you just how rapidly ALL market participants are accumulating Bitcoin.

Incredibly bullish. https://t.co/qf8w5RN1zo

— Charles Edwards (@caprioleio) December 26, 2020

Retail is indeed coming as seen in the growing interest reflected on Google Trends, which has surged to February 2018 levels, and exchange activity. Ki-Young Ju, CEO of data provider CryptoQuant noted,

“Retail investors are coming. BTC outflow from whales is a strong bullish signal. Otherwise, it's a bearish one as whales tend to benefit from retail investors. We need more exchange outflows from whales before another leg up.”

Ju remains very bullish on BTC in the long term and in the short-term as well, he is expecting the $30k breakout soon but says “it's hard to break $28.5k.”

If the ongoing cycle mimics the latest one, retail will start accumulating here in large numbers attracted by the price rises, now that “inventory depletion on spot exchanges has stopped, signifying the re-accumulation phase of this macrocycle is likely complete,” said on-chain analyst Willy Woo.

Woo explains that retail tends to store more of their coins on crypto exchanges, which results in the inventory to climb later in the cycle.

Interestingly, “this re-accumulation phase was 2x more powerful than the last cycle. It took 2x longer to complete and the depletion was 2x deeper,” noted Woo adding that it is “very bullish.”

This resulted in one of the biggest CME gaps ever both in terms of BTC and USD. When the traditional markets were closed down, BTC was trading around $23,700 but bitcoin futures on the largest regulated platform will be opening on Monday at a whopping $4,500 above it.

But with the market moving down today, it is to be seen how this week will go, if a much-wanted pullback will finally come or we will hit $30,000 first. Trader Scott Melker on the prospect of a correction said,

“A drop to 20k to retest the former all-time high as support would terrify many when that price was a dream two weeks ago.”

Similar to Notcoin - Blum - Airdrops In 2024

origin »

192 +