Bitcoin’s price reached another all-time high of $41,000 on Friday, giving it a market value of $700 billion while the cryptocurrency market has surpassed $1 trillion for the first time.
The latest rally was caused by institutional investors who want to hedge against the decline of the U.S. dollar and fiat inflation. They were also spurred by the fact that more stimulus will be pumped into the economy.
Bitcoin has started consolidating to around $40,000, but large institutional investors are adamant. They are still buying more Bitcoin even when Bitcoin is moving below the resistance level.
Investors are still buying more Bitcoin
As it stands, Bitcoin is close to a blow-off top price implosion, yet investors are busy grabbing as many Bitcoin as they can at the moment. Renowned Bitcoin analyst Filbfilb said with the rate of Bitcoin’s recent gains, the top cryptocurrency may soon enter a corrective phase.
“I don’t think we’re far from blow-off top,” Filbfilb opined.
Market participants are eager to know where the market is headed. Filbfilb said a new style of buying was fuelling more resistance levels to a new all-time high. But the analysts were quick to point out that Bitcoin will surely reach the point where moving upward is no longer possible, as is the case with other markets.
Bitcoin is increasingly making smaller consolidations after failed sell-off attempts. As a result, the market is very close to a blow-off top, but the extent it will go is what anyone cannot say.
Filbfilb further stated that 20% of Bitcoin corrections are bought with aggression. New sets of investors are not looking to slow down as they enter the market with aggression. This is unlike the casual manual exposure seen during the 2017 rush when Bitcoin hit an all-time high of $20,000.
This time, the new investors are still accumulating, and they don’t care about the price movement or whether they are buying at an overbought position. Their main goal is to invest a certain amount in Bitcoin. And they will keep buying until they accumulate a certain amount of Bitcoin.
Market mood is still bullish
Bitcoin gains in 2021 alone have exceeded 42% when it peaked at $41,000 on Thursday. It later dropped by 9% the next day. Although several analysts are looking at the possibility of additional corrections, the market mood on Friday was still bullish.
But some analysts are still very cautious, warning that no one knows when the bullish trend will end, which makes it highly unpredictable and risky at the same time.