- Bitcoin has fallen within yesterday from $37,000 to briefly $28,800 and draws a minus of more than 10%.
- Experts are divided on whether the bottom at $28,800 has been reached or a further downward movement will follow.
Bitcoin briefly fell by 12% from just under $37,000 to $28,800 within the last 24 hours. At the time of writing, the Bitcoin price has stabilized at the $31,800 mark, but remains volatile for the time being. The market capitalization has fallen to $593 billion and Bitcoin dominance to 64.7%.
Blockroots founder and Bitcoin trader Josh Rager elaborates that Bitcoin has fallen below the important support of $30,200 on the daily chart, which means that further downside could follow. Although Bitcoin may have found a bottom at $28,800, he is waiting for a clear signal that confirms the end of the correction or signals a further downtrend.
This is why it can be wise to wait $BTC broke a daily level so continuation down, along with bounces in between, can be expected https://t.co/obaKTcYKxY pic.twitter.com/euSvlIrcrx
— Josh Rager ? (@Josh_Rager) January 21, 2021
The Bitcoin market continues to be dominated by whales who have moved to send their Bitcoins to exchanges like Coinbase in preparation for a possible sale. New figures from data analytics service CryptoQuant clearly show that numerous whales have moved their capital to exchanges and this movement has often been accompanied by a corresponding price correction.
Whales are depositing $BTC to exchanges.
No doubt it'll hit $100k this year, but in the short-term, if we wouldn't see any significant buying pressure from @CoinbasePro, I think $BTC would be bearish.
Should keep eyes on Coinbase outflow and Coinbase Premium(will launch by tmr) pic.twitter.com/kotHydfxfM
— Ki Young Ju 주기영 (@ki_young_ju) January 20, 2021
Other analysts, including “il Capo Of Crypto”, see the current development as a healthy correction that the market needed. On the daily chart, Bitcoin has still closed above the $30,000 mark, so according to “il Capo” this is not the end of the bull market, but a healthy development.
Seeing real fear and price is above $30k…
No htf candle close below $30k = safu
All indicators reset. This is a healthy retracement, not the end of the bull market.
— il Capo Of Crypto (@CryptoCapo_) January 22, 2021
Prominent analyst “The Wolf Of All Streets” confirmed that Bitcoin has drawn a bullish pattern on the 4-hour chart. Other indicators suggest that Bitcoin is currently in an oversold condition and that’s why the price might rise soon. In his opinion, BTC will soon continue the recent uptrend.
Beautiful dragonfly/hammer on the 4 hour. Potential bull div coming out of oversold.
I’ve seen worse reversal signs, even if only temporary. #Bitcoin
— The Wolf Of All Streets (@scottmelker) January 22, 2021
Rising institutional interest could make for bull run soon
A new research report by consulting firm Aite Group, commissioned by investment platform eToro, also shows that insufficient market capitalization is the biggest barrier to institutional adoption of cryptocurrencies. The report states that Bitcoin has attracted investors with strong capital after breaking through the $25,000 mark.
According to the report, there are 4 main barriers that prevent institutional investors from entering the crypto market. Insufficient market capitalization compared to the stock market, regulatory uncertainties, an as yet immature market structure, and concerns about reputational risks and security issues. Tomer Niv, head of business development at eToro’s professional crypto exchange eToroX, said of the study:
2020 was the year when many institutional investors such as banks and traditional asset managers began to either invest in crypto or seriously consider doing so, with several touting the asset class – particularly bitcoin – as an inflation hedge. Daily trading volumes on eToroX doubled from Q3 to Q4 as prices surpassed the $25,0000 threshold.
Moreover, the next upswing in prices will be driven by institutional players, who will primarily look to regulated players in the market like eToroX, Niv added:
Subscribe to our daily newsletter!
No spam, no lies, only insights. You can unsubscribe at any time.
It’s encouraging to see that the next phase of the crypto industry’s evolution is underway with more participation from institutions. At eToroX we are seeing more and more professional traders coming to us wanting to know how to access crypto liquidity.
The full study can be read at this link.
