- Bitcoin’s price development has been quite inconsistent lately. Buyers and sellers both vied for control of the cryptocurrency trend
- In the medium term, the bulls are clearly in control and showing no signs of being able to do without bears anytime soon
- Where the market trends will develop in the medium term will likely depend on whether Bitcoin starts rising again independently of the rest of the market
- If altcoins surrender some of their strength in the short term, it could fuel a surge past all-time highs
- Although the price of BTC is relatively high compared to just a few months ago, data on the chain seems to suggest that large whales are still pouring into BTC rapidly
Bitcoin has seen some wild price swings in the past few days, falling to lows of $ 30,000 a few days ago before climbing to highs of $ 33,500 this morning.
The cryptocurrency is showing few signs of weakness at the moment, with bulls slowly but surely pushing the cryptocurrency higher if they continue to aim higher in the short term.
Where all market trends in the medium term undoubtedly depend on Bitcoin and whether it can generate tailwind for Ethereum and other Altcoins or not.
An on-chain analyst now notes that data suggests that whales and institutions are still pouring into Bitcoin, despite the relatively high prices. This suggests that an uptrend could be imminent.
Bitcoin is gaining traction as the market-wide rally continues
At the time of writing, Bitcoin is trading just under 6% from its current price of $ 33,770. This is a massive increase from the recent lows of $ 30,000 set a few days ago.
The entire market is moving higher in parallel with BTC, with Ethereum and most of the major DeFi altcoins seriously gaining momentum.
Bitcoin appears to be vying for a move to its previous highs, but it remains unclear whether it will gain enough momentum to shake those levels in the short term.
Institutions are still buying BTC despite the rally
The institutes continue to drive the growth of the cryptocurrency and show no signs that they are slowing down their newfound bitcoin accumulation habits.
An analyst recently stated in a tweet that data suggests institutions are still raising the price of Bitcoin.
“For your information, the January 2nd Coinbase outflow was an all-time high. It appears that institutions bought BTC when the price was over 30,000. The BTC bull market is not over yet. “
Image courtesy of Ki Young Ju. Source: CryptoQuant.
This means that Bitcoin is unlikely to see an immediate trend change, although its uptrend could ease once this class of buyers becomes more satisfied with their positions.
Featured image from Unsplash. TradingView charts.