Bitcoin price rally successfully filled the CME gap by plunging more than $3000 in the previous working day. Yet the BTC price managed to recover with the increased trading volume in the past couple of hours. Despite the steep price plunge, Bitcoin manifests a strong bullish trend and below mentioned are the top 3 reasons.
$40 Billion May Pour In!!
Joe Biden, The President, signed a COVID-19 relief stimulus package to provide financial aid to the impacted citizens. According to a survey conducted by Mizuho Securities, a Japanese Investment and Banking Firm, 2 out of 5 people who still expect the relief, wish to invest some part in Bitcoin.
The survey was conducted with more than 200 people and if they invest in Bitcoin, then a huge influx of liquidity may spike the price again. According to the report, the stimulus worth $380 billion in form of direct checks would be issued and considering only 10% of the share may flow to bitcoin, then it would come to around $40 billion.
Also Read: Bitcoin Price Rally Going Parabolic Again, New ATH on the Cards?
Retail Traders Bought More Bitcoin Than Institutions
It is a belief that as the institutional investors jump in, the BTC price spikes. And it so happened when huge institutions like Square, Mircostratergy, Tesla, etc announced their Bitcoin holdings. Yet, on the contrary, according to a report from JP Morgan, retail investors hold more Bitcoin than institutional investors.
This could be interesting!!! As the institutions hold for a long term and hence play a minute role in the day to day price fluctuations. Conversely, the retail traders follow th practise of ‘buy at the dip and sell at the peak’ due to which there is a flow of liquidity and the asset within the crypto space. Therefore, if the retails traders hold more bitcoin, then a stronger bitcoin bull rally may be approaching.
Bitcoin Price Rally May Accelarate Soon
BTC price after a steep downfall from the levels close to $60K to as low as $53K within a day including some green candles, showcase the possibility of an inverse ‘Head & Shoulder’ pattern.
Therefore, the upcoming candles are very crucial for the Bitcoin price, which could fuel further price movements. However, on successfully breaking the neckline of the inverse H & S, pattern, the price may shoot up towards the levels close to $60K.
At the time of writing, the price is $55,877 with a surge of 0.32% compared to the previous working day. However, the BTC price rally was never presumed to have halted rather slowed down a little. Once the bitcoin price gears up with strong bullish momentum, it may surpass the current ATH to form a new one soon.
Also Read: How Traders are Responding Towards Recent Bitcoin Rally!
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Source: https://coinpedia.org/bitcoin/bitcoin-price-to-hit-60k-soon/
