While Bitcoin network activity is on the hunt for records, the overall crypto market is evidence of rising capital inflows, pushing the crypto reserve currency back to $ 40,000.

The respite that the cops took after the exertion of strength of the last few weeks only lasted for a short time. With a 24-hour plus of over 9 percent, the Bitcoin Storm scam rate seamlessly picks up where it left off at the beginning of the week. At press time, the digital currency is trading at $ 38,379, putting itself back in position for an attack on the $ 40,000 mark.

Bitcoin price in the weekly chart

While the Bitcoin price is trying to bottom out above the symbolic key brand, almost the entire crypto market starts the trading day with good omens. During the day, the top 10 coins increase in value significantly, of which the DeFi coins Polkadot (DOT) and Chainlink (LINK) stand out at the top with price increases in the two-digit range.

With a strong dominance of 69 percent over Altcoins, the crypto draft horse Bitcoin is gradually leading the overall market back towards the all-time high. Overnight, in the wake of Bitcoin, total market capitalization once again passed the USD 1 trillion mark and is therefore only USD 10 billion below the preliminary high.

Bitcoin network activity

But also at network level, the indicators show a sustained growth trend. While the total market capitalization is only a few meters away from the all-time high, on-chain activity with around 1,343,000 actively used BTC addresses already set a new record high on January 6th. With over 1,100,000 addresses sending or receiving transactions, the value is still at the top level and underlines the extremely brisk trading activity on the Bitcoin blockchain.

Bitcoin has posted its first negative opening after rising for three straight days to an all-time high above $40,000.

The world’s leading cryptocurrency fell as much as 7.45 percent during Monday’s Asian session, hitting an intraday low of $36,565 before stemming its losses ahead of European trading hours. The shift in sentiment was thanks to speculative traders looking to lock in short-term gains near $40,000.

Bitcoin is feeling higher buying sentiment in the $36,000-36,500 range.

Meanwhile, global investors also bet on reflation trades amid the recent rise in government bond yields. The yield on the benchmark 10-year Treasury note rose above 1.09 percent for the first time since March.

Inflation expectations typically favor Bitcoin’s bullish outlook (Go to Buy Bitcoin at eToro guide), but the market seemed to have allocated its capital elsewhere as the cryptocurrency became too risky to buy near its overbought levels.

For example, U.S. benchmark West Texas Intermediate crude oil prices rose above $51 a barrel on Wednesday following Saudi Arabia’s decision to cut production over the next two months. The rise also pointed to a stabilizing economic outlook as investors compared the rising number of coronavirus infections to vaccine distributions.

FOMO sentiment

But does that mean demand for safe havens like bitcoin will fall in the coming period? Apparently not.

Investors may have to jump back into the cryptocurrency market as U.S. President Donald Trump agrees to hand control to his successor, Joe Biden. This coincides with a clear victory for Democrats over the two seats in the recent runoff elections in Georgia.

Thanks to that, Democrats now control Congress. That paves the way for the Biden administration to pass the additional fiscal stimulus, starting with a direct $2,000 check for Americans struggling with the economic consequences of the coronavirus pandemic.

Many strategists, including those at JPMorgan & Chase, see the bitcoin price closing above $100,000 amid aggressive government spending.

„I expect bitcoin and tech stocks to double again in the next 6-9 months,“ says Immad Akhund, CEO/co-founder of Mercury in San Francisco, for example.

And:

„It’s clear we’re in an asset bubble fueled by fiscal stimulus, low interest rates and, ironically, higher disposable income in the pandemic.“

His conclusion:

„It probably won’t end well, but enjoy the ride on the way up.“

Are we in for a bitcoin correction?

Other warnings came from analysts who rely on technical indicators. One of them – a pseudonym – sees Bitcoin in a rising wedge channel, which typically signals a bullish-to-bearish shift after a strong pullback. Eventually, it pushes the price as low as the maximum height between the upper and lower boundaries of the channel.
Bitcoin’s Rising Wedge indicator sees the price back below $30 in the futures, opines MMCrypto.

„We’ve had a fake-out, an M-pattern and a breakdown,“ the analyst said. „I’m going to be cautious unless Bitcoin breaks the all-time high again.“

BTC/USD was trading at $38,494 at the time of publication.

De Bitcoin-prijs schommelde van de ene op de andere dag boven de $35.000, met een stijging van 10% binnen 12 uur.

De belangrijkste katalysator is waarschijnlijk de agressieve accumulatie van BTC door kopers op Coinbase.

Gedurende de afgelopen week, toen de Bitcoin Up hoger werd verhandeld op Coinbase, volgde er een grote rally.

Waarom leidt een Coinbase premie meestal tot een Bitcoin-prijsrally?

Wanneer er een premie is op Coinbase, betekent dit dat kopers op Coinbase meedogenloos bieden om Bitcoin te kopen.

Dit zorgt ervoor dat de vraag van de koper naar BTC overal toeneemt, waardoor de prijs snel stijgt.

Vermogende beleggers kopen doorgaans Bitcoin via de Grayscale Bitcoin Trust en de CME BTC Futures Exchange.

Echter, zoals te zien is aan MicroStrategy’s enorme Bitcoin-accumulatie op Coinbase, kunnen vermogende beleggers nog steeds BTC kopen op Coinbase.

De timing van het verschijnen van de premie op Coinbase was cruciaal omdat de verkoopdruk vanuit Azië weer opdook.

Op 5 januari bleek uit gegevens van CryptoQuant dat de walvissen in Zuid-Korea 60 miljoen dollar hebben gestort op Bithumb.

Bithumb is de grootste cryptocurrencybeurs van Zuid-Korea en het is een van de weinige beurzen die zo’n grote order zou kunnen verwerken als deze zou worden geplaatst.

Gezien het feit dat de Bitcoin-prijs van de ene op de andere dag steeg ondanks de grote storting in Bithumb, is het waarschijnlijk dat kopers in de VS de verkopers in Azië overtroeven.

Wat vinden handelaren?

David Puell, een bekende on-chain analist, zei dat de Bitcoin-prijscyclus op dit moment niet bearish is. Hij zei:

„Bijgewerkte slaapstroom, die ik me niet kan herinneren live gezien te hebben. Heeft zijn stier/beer drempel niet overschreden. IMO dit is niet bearish, aangezien de huidige primaire trend vrij duidelijk is. Het doet me in plaats daarvan afvragen: hoeveel hoger moet de prijs gaan om dit ergens in de buurt van overbought te krijgen?“

Wanneer een niveau met gestapelde verkooporders wordt overschreden, kan dit leiden tot een cascade van korte broeken, waardoor de prijs van BTC hoger komt te liggen.
Hier is de reden waarom de Bitcoin-prijs plotseling boven de $35.000 is gestegen.

• Bitcoin
• 6 januari om 4:46 uur UTC
• $35,244.95
• 9.81%

Bitcoin, momenteel nummer 1 op de markt, is de afgelopen 24 uur met 9,81% gestegen. BTC heeft een marktcap van $655.28B met een 24-uurs volume van $68.21B.