Bitcoin
Bitcoin Sets New All-Time High on Heels of OTC Buying Frenzy
Cole Petersen | Jan 08, 2021 | 19:35
- Bitcoin and the aggregated cryptocurrency market are caught within another leg higher, with bulls staying in full control of the market
- This uptrend comes shortly after an intense selloff seen yesterday evening, which came as a result of incredibly high funding rates on margin trading platforms
- The move lower reset these funding rates and cleared out “late longs” – which laid the groundwork for a move higher
- One analyst explained in a recent tweet that this push higher comes close on the heels of a flurry of OTC buying activity
- This is a bullish sign that indicates large buyers are still jumping into Bitcoin despite its relatively high prices
Bitcoin and the aggregated cryptocurrency market have been caught within the throes of another uptrend, with Bitcoin rallying past $40,000 while the rest of the market follows close on its tracks.
This intense upswing is simply an extension of the momentum that it has seen throughout the past few weeks and months and comes as a combination of retail and institutional money pours into the markets.
One on-chain analyst noted that OTC activity as of late came about just before this push past $40,000 and could indicate that further upside is imminent.
Bitcoin Rallies Past $40,000 as Uptrend Continues
At the time of writing, Bitcoin is trading up just under 3% at its current price of $40,700. This is around the price at which it has been trading all morning.
It briefly ran as high as $42,000 before facing some inflows of selling pressure that hampered its growth and caused it to see a retrace to $39,000.
It has since bounced from these lows and shows some immense signs of strength as bulls try to push it back up towards $41,000.
On-Chain Analyst: Flurry of OTC Trading Activity Occurred Before Latest Rally
One on-chain analyst explained in a recent tweet that Bitcoin’s latest surge comes just days following a massive surge in OTC buying activity.
He notes that these investors are currently up 24% on their BTC investments.
“Looking at the latest Coinbase outflow, possibly OTC deals, I think we can estimate their PNL. BTC surged 24% since Jan 2. If you were institutional investors, would you be satisfied with 24% PNL for Bitcoin?”
Image Courtesy of Ki Young Ju. Source: CryptoQuant.
Whether or not these types of OTC deals continue strong as Bitcoin sets new all-time highs will provide some insight into this movement’s sustainability.
Featured image from Unsplash. Charts from TradingView.
