Aggressive buying by institutional investors is one of the main reasons for today’s Bitcoin (BTC) rally. Some investors have expressed their intention to hold their positions for several years, but it’s also worth noting that many of these investors have recently come to love Bitcoin and that their belief in HODL may not resemble the early Bitcoin whales.

The current bull market can also deviate from the past as institutional investors simply cannot hold out if Bitcoin suddenly makes a sharp correction. Fund managers must confront angry clients if Bitcoin’s performance declines, so it’s important to maintain a higher level by looking at the higher price estimates put forward by analysts.

Bitpay Chief Commercial Officer Sonny Singh said in an interview with Bloomberg that if the Bitcoin rally continues, institutional investors may be tempted to keep profits, and they are unlikely to do so in the long run.

If this happens, the markets will have to deal with huge sales volumes, which could lead to a sharp downturn if new institutional investors or long-term bitcoin whales don’t step in and buy them.

Some calculations, such as an increase in open interest in futures and higher funding rates, show that traders are betting heavily on the continued growth of bitcoin. As before, a sharp drop in the price of bitcoin could put leveraged players into a long liquidation.

Therefore, there is a reason why traders are careful at this stage and use the right money management principles to protect paper surpluses.

While the growth of around $ 36,000 in bitcoins may have slowed, many altcoins are surging. Let’s examine the cards of the top 10 cryptocurrencies to determine potential bullish target levels.

Bitcoin / US dollar
The long tails of the Jan 4 and 5 candles indicate that bears were trying to initiate a correction, but bulls were aggressively buying on dips. Bitcoin resumed its bullish trend today, pushing the price above its previous high of $ 34,786.04.

The next upside target is $ 37,000, and if this level is measured, the BTC / USD pair could rise to $ 45,000.

However, the Relative Strength Index (RSI) remains in the overbought zone, which indicates the risk of a correction. The first support on the back is the 20-day exponential moving average ($ 28,213).

If the pair bounces off this support, it would indicate that traders are continuing to buy on the downtrend and this could keep upside potential intact.

Conversely, if the price falls below the 20-day moving average, it could lead to a selling panic, which could cause the pair to fall into the 50-day moving average ($ 22,285).

ETH / USD
ETH resumed its bullish trend today as the bulls pushed the price above the Jan 4 intraday high of $ 1,156,456. However, the RSI above 88 indicates that the largest digital currency is overbought in the short term.

If the price does not stay above $ 1,156,456, the ETH / USD pair may consolidate in a narrow range for several days before trying the next trend.

Conversely, if the pair stabilizes above $ 1,156,456, this would indicate a possible continuation of the melt. In this case, the pair could rise to $ 1260 and then to $ 1420.

The pair will indicate a possible change in direction if the price falls and falls below the support at $ 840.93.

XRP / US dollar
While most of the major digital currencies are accumulating, XRP is close to its recent downturn, indicating that traders are not buying aggressively at current levels.

The unity also testifies to the frivolity of the bears. This lack of interest on the part of bulls and bears could lead to a move beyond the widened zone for a few more days.

The next phase of the bearish move could begin if the bears push the price below the $ 0.169 support. Such a move could trigger a panic sell-off that could lead to a drop to $ 0.10.

In contrast, a break above the 20-day moving average ($ 0.30) would be the first sign of strength and a recovery could rise above $ 0.385.

LTC / USD
On a large scale on January 4, Litecoin (LTC) formed a candlestick pattern on January 5, which showed resistance between bulls and bears. Uncertainty about the upside has been resolved and the bulls are now trying to resume the bullish trend.

Source: CoinTelegraph

LEAVE A REPLY