Following a period of bouncing from its recent short-term blow, Bitcoin once again registered a quick gain – 15% – over the last three days, reaching $37,200. Sure, this is clearly impressive, but also raises one big question: will the digital asset be able to get past the $38,000 “milestone”?
It’s been a few weeks since a sideways range trading can be observed, for both Bitcoin and Ethereum, even though investors have the option of rotating between the two cryptocurrencies, due to ETH’s role in decentralized finance, but also what we can call an explosive price appreciation.
More traders are joining the trend
According to alternative social analytics firm TheTie, the volume of Google searches for “buy crypto” reached an all-time high. There has also been a 135% surge in cryptocurrency activity on social media during the last three months, which once again confirms the growing interest in crypto.
Add the fact that payments giant Visa announced that it’s going to focus more on sealing new cryptocurrency payments, including digital banks and debit cards.
Finally, we should also mention the recent 15,200 BTC outflow at Coinbase, considered by analysts a serious ‘bullish signal’, as it indicates an “OTC deal from institutional investors”, who might accumulate BTC into safer locations, like cold wallets.
But what’s keeping Bitcoin from “getting bigger”?
It has been observed that many top traders, no matter the exchange, have increased their shorts this week. Yes, some large traders may hold positions in cold wallets or other safer storage options, but there’s still a lack of confidence regarding Bitcoin’s ability to push through $38,000 and start targeting the $40,000 mark in the near future.
Additionally, there’s also Ethereum’s outperformance that was probably fueled by top traders, thus reducing Bitcoin’s overall exposure. And as a side note, this makes a lot of sense, if we think about the upcoming CME ETH listing, scheduled for February 8. Therefore, BTC could need more than expected to reach the next psychological mark.