Ki-Young Ju says Bitcoin is unlikely to fall below $ 25,000. Because corporate participation in the field has reached a record level.
In-chain analyst, who serves as CEO of CryptoQuant, said in a tweet on Tuesday that investors and traders should consider $ 26,000 as a support point.
After analyzing the total number of Bitcoins held by New York-based Grayscale Investments and in the reserves of mainstream companies, Mr. Ju claimed that “16 percent of the market value realized by BTC now belongs to institutional investors.”
It turned out that the total amount is $ 49 billion. The realized market value of bitcoin is about 186 billion dollars.
Recent developments have pushed Bitcoin further into the mainstream financial assets category.
Small traders are now seeing large investors holding ample cryptocurrency wealth against inflation, ultra-low bond yields and the depreciating US dollar.
Meanwhile, most of the so-called whale trading has happened after Bitcoin went above $ 20,000, and it shows that whales are speculating on higher prices in the future.
In a separate data released Monday, Mr. Ju noted that the selling side of Bitcoin whales has reached a state of extinction.
The analyst said, “I think this bull run will continue as long as institutional investors continue to buy and the Stock Market Whale Ratio remains below 85 percent,” he said.
Meanwhile, corporate involvement has encouraged retail traders to seize new opportunities in the Bitcoin market. According to Adam Back, co-founder / CEO of Blockstream, these small investors pushed the BTC / USD rate to an all-time high during the holiday season.
As more institutions commit to purchase $ 100 million worth of Bitcoins in the first quarter of 2021, new supports are waiting to emerge. Greenpro Capital, a Hong Kong-based business intelligence firm, announced Monday that it will increase that capital through debt sales by launching a Bitcoin fund.
Reverse foundations also leave the Bitcoin price in an upward trend.
An analyst named CryptoHamster found the cryptocurrency to be in a downward consolidation phase from its all-time high of $ 28,300. He stated that this phase looks like the Descending Triangle, a technical setup that pushed Bitcoin to $ 29,300 in the next bullish breakout.
On the other hand, a negative breakout could lower the price to $ 23,200 and invalidate Mr. Ju’s $ 25,000 support call.