Bitcoin

As Bitcoin approaches 26,000, BTC could break $ 40,000 in the next wave of momentum, Trader says

Bitcoin (BTC) price hit a new all-time high of $ 25,945 on Binance on December 26, just a day after hitting its previous high on Christmas Day.

Hourly candlestick chart for BTC / USDT (Binance). Source: TradingView.com

There are many general reasons for Bitcoin’s rally: like the high institutional demand for BTC. For the current intraday rally, the excessive short contracts on Binance futures are likely to be the main catalyst.

$ 25,000 per BTC is now above the stock-to-flow model price

Before the boom, many traders cut Bitcoin on most of the major futures exchanges. This eventually resulted in a small bearish decline as short sellers sold so close to their previous all-time high. Once the record was broken, BTC began to rise rapidly as the price of Bitcoin entered pricing.

As Bitcoin approaches 26,000, BTC could break $ 40,000 in the next wave of momentum, Trader says
As Bitcoin approaches 26,000, BTC could break $ 40,000 in the next wave of momentum, Trader says

Bitcoin futures contracts worth more than $ 131 million have been executed in the past 24 hours, according to Bybt.com. As long as the derivatives market continues to see sellers rising, the likelihood of shorter-term contractions in the near future remains high.

Furthermore, The current rally means BTC is now above the centerline of the popular stock-to-flow model, which is forecasting a target of $ 100,000 for December 2021.

What about bitcoin next?

Traders and technical analysts are generally largely positive about Bitcoin price developments. For example, popular dealer Philip Swift noted that the number of large sellers has actually decreased during the current rally.

“The big players,> 1000btc wallets, have calmed down for the first time in this great race,” explained Swift. “We can see that the number of> 1000btc wallets has been decreasing rapidly over the past week. While we can see that the wallets of 1-10 BTC (bulk retailers) have been increasing steadily over the past few weeks.”

Added:

So a quick scan suggests that many retail shoppers are arriving over the Christmas holidays. Possibly due to: a) hearing BTC from family / friends over the holidays, new all time highs are now being made. b) plus some possible migration from XRP / other alts.

Traders are also becoming more cautious when it comes to selling Bitcoin as it hasn’t hit a clear cap yet. Until BTC hits its peak, the chances of a sharp bearish contraction that will fuel the price rally even further in the near future remain high.

Additionally, Cointelegraph Markets analyst Michael van de Poppe said that Bitcoin could cross the $ 40,000 mark on the next wave of momentum. He wrote::

“Bitcoin breaks even further as it approaches my second Fibonacci point of interest at $ 25,800. The higher we go, the higher the next dynamic move will take us. If it is capped at $ 25,800 this time, the next push could push BTC towards $ 40,000. “

Note the institutional demand

The next logical stop for Bitcoin would likely be when institutional buying of Bitcoin slows down.

The most practical way to measure institutional sentiment is to evaluate the market volume for CME Bitcoin futures and BTC entries in grayscale.

Until the two institutional investment vehicles see a noticeable decline in demand and trading volume, the chances of a profound Bitcoin correction remain slim.

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