Bitcoin fell 12% to $ 28,800 in the past 24 hours from just under $ 37,000. At the time of writing, the Bitcoin price is fixed at $ 31,800, but we can say it is volatile for the time being. Market capitalization fell to $ 593 billion and Bitcoin dominance dropped to 64.7%.
Blockroots founder and Bitcoin analyst Josh Rager said that Bitcoin fell below the substantial support of $ 30,200 on the daily chart, which could bring further downside.
The Bitcoin market continues to be dominated by whales who send their Bitcoins to exchanges such as Coinbase to prepare for a possible sale. The new figures from the data analytics service CryptoQuant clearly show that a large number of whales are moving their capital to the exchanges, and this movement is often accompanied by a price correction.
Other analysts, including “Province Capo Of Crypto”, view the current development as a healthy correction the market needs. On the daily chart, Bitcoin closed above the $ 30,000 level, so according to “il Capo” this is not the end of the bull market, but a healthy development.
The well-known analyst “The Wolf Of All Streets” confirmed that Bitcoin is charting a bullish pattern on the 4-hour chart. Other indicators show that Bitcoin is currently in an oversold state and therefore the price may rise soon. According to him, BTC will soon continue its recent uptrend.
In addition, a new research report by Aite Group, a consulting firm commissioned by the investment platform eToro, shows that insufficient market value is the biggest obstacle to institutional adoption of cryptocurrencies. The report states that Bitcoin attracted investors with strong capital after breaking the $ 25,000 level. According to the report, there are 4 main barriers preventing institutional investors from entering the crypto market: Insufficient market value compared to the stock market, regulatory uncertainties, an immature market structure and concerns about reputation risks and security issues. Tomer Niv, head of business development at eToro’s professional crypto exchange eToroX, said about the study:
“2020 was the year when many institutional investors such as banks and traditional asset managers launched their asset class (particularly bitcoin) as an inflation protection, either starting to invest in crypto or seriously considering it. Daily trading volume at EToroX doubled from the 3rd quarter to the 4th quarter as prices exceeded the $ 25.0000 threshold. ”
He also added that the next rise in prices will be driven primarily by institutional investors who will be looking at regulated players in the market such as eToroX:
“It is encouraging to see the next phase of the crypto industry proceed with greater participation of institutions. At EToroX, we see more and more professional traders coming to us who want to know how to access crypto liquidity. “