The total cryptocurrency market cap is back above the $ 1 trillion level as Bitcoin (BTCbulls pushed the price back to $ 40,000 on Jan. 14.

Daily cryptocurrency market performance. Source: Coin360

Bitcoin price soared to $ 40,099 in the early trading hours on Jan. 14, according to data from CoinTelegraph Markets and TradingView before pulling back to $ 39,500. This marks a fast turnaround time of the recent drop below $ 31,000 and shows that professional and retailers are eager to see the BTC price higher despite the huge $ 1.5 billion liquidation.

Establishing USD 40,000 as a support is an important psychological level and an important support that traders look to. If traders are able to flip the level to support, then expanding to USD 45,000 is the mindset followed by many traders.

BTC / USDT 4-hour chart. Source: TradingView

While the previous rally above $ 40,000 was partially driven by a flurry of buy from private investorsGuy Hirsch, the president of eToro’s US wing, sees institutions as the driving force behind the current rally. Hirsch said it would “come as no surprise to see a new all-time record this weekend.”

In private commentary to Cointelegraph, Hirsch said:

“The smart money has never stopped allocating to Bitcoin, even as the late-stage retailers who helped push the latest rally above $ 40,000 were largely shaken. Now the momentum is clearly bullish again, and price action reflects this sentiment. “

Institutions continue to buy Bitcoin

While Bitcoin’s recent price volatility has given some of the newer institutional investors a reason for a pause, the more seasoned financial powerhouses are bought the dip of the weak hands, making the most of the sharp downturn.

It is noticeable that not only BTC receives institutional attention as the current market cycle progresses. Denis Vinokourov, head of research at Bequant, sees the growing trend as a positive development for the entire cryptocurrency ecosystem.

Vinokourov said:

“Open interest on Bitcoin futures can show a relentless rise, but this did not prevent capital from also flowing into altcoins and relevant derivatives products. This, in turn, suggests compartmentalization, targeted asset allocation and further maturation of the broader market. “

It’s 50/50 from here

Such as reported by CointelegraphSince the decline of BTC on Jan. 11, some of the more prominent figures in the space have been more optimistic than ever and are also calling on Bitcoin to hit a new record in the near future.

Decentrader founder filbfilb said, “The immediate future for the best cryptocurrency is” 50/50 what is happening at this point. A move in excess of $ 40,000 will establish a new level of support, after which “retesting from its all-time high is very likely.”

In a private conversation with Cointelegraph, the analyst stated:

“Price action is very similar to both the rejection and correction of $ 35,000 and that of $ 20,000. We shot through for $ 35,000; at $ 20,000, we had to retest the lows. ”

Whatever happens, the analyst sees $ 40,000 as a “major pivot point that will dictate the coming weeks.”

BTC / USD daily chart. Source: Coin360

Altcoins are also seeing positive price action for the third day in a row. Ether (ETH) was up 9% to $ 1,245 and Polkadot (DOT) found additional momentum as it rose 33% to a new high at $ 14.92.

The total market capitalization of cryptocurrency is now $ 1.04 trillion and Bitcoin’s dominance rate is 69.1%.