Bitcoin (BTC) rose on Jan. 14, recovering $ 40,000 amid new evidence of new major purchases on exchanges.
BTC price adds $ 10,000 in 3 days
The rise is the latest bullish sign to emerge from Bitcoin’s price action, which targeted levels not much above USD 30,000 a few days ago.
The $ 40,000 revisit came hours after BTC / USD came in and appeared turn around a crucial resistance zone to support around USD 38,000.
“It must turn around. If it does, we will be eager for new record highs. If not, there is more chance of consolidation,” said Cointelegraph Markets analyst Michaël van de Poppe summarized in a prior tweet.
Others were optimistic beforehand. Gemini Exchange co-founder Tyler Winklevoss referred to several press releases of a “crash” in Bitcoin as it slipped to $ 30,250 earlier in the week. He told Twitter followers:
“They said #Bitcoin died Monday, but now it’s over 37k. Don’t listen to the sound, stay focused.”
“Did nocoiners really think #Bitcoin wouldn’t bounce? This is the year of the Metal Bull. $ 100k is inevitable,” says Blockstream CSO Samson Mow added.
Stimulus and buy-ins captivate Bitcoin bulls
Bears losing traction add to their wary sentiment on the US dollar as President-elect Joe Biden announced a new coronavirus stimulus package reportedly worth trillions of dollars. While official details were still expected at press time, it was believed to include $ 2,000 personal incentive vouchers to eligible Americans.
“I think risk asset positioning is becoming a concern, so in the near term the dollar could come under pressure,” said Shusuke Yamada, Japan FX chief strategist at Bank of America in Tokyo. told Reuters on the US outlook.
“I focus on the gradual weakness of the dollar in 2021.”
The US dollar currency index (DXY), with which Bitcoin traditionally shows reverse correlation, but continued its advance the day before the announcements from Washington.
That rise was accompanied by a similar recovery in the removal of funds from Bitcoin exchanges. As noted by on-chain analytics tool CryptoQuant, a single hour on Thursday saw “unusual” outflows from three major trading platforms, indicating massive purchases had taken place.
Binance led the interest, with 6,051 BTC ($ 233 million) withdrawn at the time, followed by BitMEX with 951 BTC ($ 37 million).
“If it is an OTC deal, that would be an optimistic signal as institutional investors are buying.”
Binance sent BTC to some unknown cold wallets. These transactions could be related to internal wire transfers or OTC deals, CryptoQuant CEO Ki Young Ju told Cointelegraph in private comment.
Such as Cointelegraph reported, similar spikes in exchange outflows had occurred during recent upward price trends.