In this one of the latest digital magazine for crypto, you will get to know all the weekly updates regarding market. Bitcoin’s 2017 bull market was driven by retail investors while the current bull market can largely be attributed to institutional investors. Crypto fund manager Grayscale’s assets under management surged from about $2 billion to $20 billion in 2020. Similarly, Bitwise Asset Management also witnessed strong inflows in the last two months of 2020 as its AUM rose from $100 million on October 28 to $500 million by the end of the year. According to the fund manager, the demand was mainly from financial advisers, hedge funds, corporations, and other institutional investors.
Several analysts believe the bull run will continue in 2021 and Bitcoin may reach $100,000 and higher. While anything is possible in the crypto markets, the sharp rally of the past few days brings back memories of the previous bull market, which ended in a sharp downturn. Therefore, traders should not get carried away by greed because if the markets turn down, most institutional investors are unlikely to HODL their positions and may rush to the exit. If that happens, Bitcoin could quickly give back a large part of the gains accrued over the past few days.
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TOP CRYPTOCURRENCIES FOR 2021 – WHICH ONES WILL DOMINATE!
Bitcoin has been in a strong uptrend that pushed the RSI deep into overbought territory. This suggests that traders are buying at every higher level due to FOMO.
While such a frenzied buying generates quick returns, it is also very risky as the rally can turn around quickly. A sample of that was seen on January 4 when the BTC/GBP pair plummeted to £19,500, a 23.66% correction in a day.
As this was the first dip, traders purchased it aggressively, resulting in a strong rebound. This suggests that the uptrend remains intact.
However, the long wick on the January 3 candlestick and the long tail on the January 4 candlestick shows traders are booking profits at higher levels and buying on dips. This could keep the pair range-bound for a few days as the bulls and the bears try to dominate proceedings.
If the bulls can push the price above £25,543.89, the up-move could resume with the next target objective at £31,399. Contrary to this assumption, if the bears sink the price below the 20-day EMA, a deeper correction to the 50-day SMA could be on the cards.
There are no reliable trade setups at current levels. Hence, traders can wait for the consolidation to end and the trending move to begin before initiating fresh positions. You can subscribe to our latest digital magazine for crypto for the latest updates about profit and loss in cryptocurrency.
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FEATURING IN THIS WEEKS EDITION
– Atrom Network
BINANCE HITS RECORD HIGH OF $80B IN DAILY VOLUME AS CRYPTO MARKETS SURGE
Binance has reported a new record of more than $80 billion in daily volume across its spot and derivatives platforms.
CRYPTO MARKET CAP REACHES ATH OF $883 BILLION—IS AN ALT SEASON COMING ?
The market capitalization of all crypto assets in the global market combined have reached an alltime high above $883 billion.
BITCOIN SMASHES $34,810 AS MARKET SEES SOME ‘SERIOUS AND PROLONGED INVESTOR ACTIVITY’
While the Bitcoin run looks more like the 2013 run, and strategists continue to call for correction as “current rally looks stretched and ripe for a fall.”