Bitcoin surpassed the $ 40,000 level, thus doubling from its previous all-time high of three years.
On Thursday, the first cryptocurrency of the day crossed five round levels at once (from $ 26K to $ 30K). The total capitalization of the cryptocurrency market for the first time exceeded the $ 1 trillion mark.
“Bitcoin has risen in price by more than $ 20,000 in 50 days after breaking through $ 18,000,” the team at Binance said. Legendary trader Peter Brandt is confident that the price is in the middle of a parabolic move.
In general, analysts maintain positive expectations from Bitcoin in the short term, while agreeing with the presence of signs of overbought, writes ttrcoin.
Commenting on the parabolic growth of bitcoin, the famous crypto blogger PlanB noted that the S2F model he created for the first cryptocurrency “works as scheduled.” According to the model, bitcoin will hit the $ 100,000 level in 2021.
Former member of the Board of Governors of the Federal Reserve System, Kevin Worsh, in a conversation with CNBC, said that large cash flows go to Bitcoin from gold.
While Google Trends data suggests that search engine user interest in cryptocurrency is still far from historically high, retail investor activity is high.
“Demand from retail investors for BTC and ETH has skyrocketed. The general public is starting to pick up the wizarding internet money fever, right as the wave of institutional capital arrives, ”says analyst Alex Saunders.
Rafael Schulze-Kraft, CTO of the Glassnode analytical platform, said that only 4.2 million bitcoins (22%) are currently in constant circulation and are available for purchase and sale.
There are two main factors that can contribute to a change in the current trend to bearish: a slowdown in the inflow of institutional money and cascading liquidations of marginal long positions, experts say.
Bitpay admits a decrease in bitcoin to $ 20,000 due to profit taking by institutions. Sonny Singh, chief commercial officer of crypto payment company Bitpay, is confident that institutional investors can bring sales of unprecedented proportions to the market.
“Bitcoin is making new highs but is still far from a peak. The price dynamics of the first cryptocurrency is not at the moment like the final stage of a bubble, followed by a deafening explosion, “the FxPro analyst team notes.
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