Stubborn bulls are firmly back in the saddle, with Bitcoin adding $10,000 to its price in just three days.
Bitcoin (BTC) surged higher on Jan. 14, reaching $40,000 on Coinbase amid fresh evidence of new large buys on exchanges.BTC/USD weekly price candles (Coinbase). Source: Tradingview
BTC price adds $10,000 in three days
Data from Cointelegraph Markets and TradingView tracked BTC/USD as the pair delivered even more bullish surprises during Thursday trading, adding over 17% in 24 hours.
The uptick is the latest bullish sign to come from Bitcoin price action, which just days ago focused on levels not much above $30,000.
The revisiting of $40,000 came hours after BTC/USD entered and appeared to flip a crucial resistance zone to support at around $38,000.
“That one needs to flip. If it does, we’ll be eager for new all-time highs. If not, more consolidation likely,” Cointelegraph Markets analyst Michaël van de Poppe summarized in a prior tweet.
Others were already bullish beforehand. Tyler Winklevoss, co-founder of exchange Gemini, referenced various press reports of a “crash” in Bitcoin as it slid to $30,250 earlier in the week. He told Twitter followers:”They said #Bitcoin died on Monday, but now it’s above 37k. Don’t listen to the noise, stay focused.”
“Did nocoiners really think #Bitcoin wouldn’t bounce back? This is the year of the Metal Bull. $100k is inevitable,” Blockstream chief strategy officer Samson Mow added.
Stimulus and buy-ins buoy Bitcoin bulls
Bears losing their grip complements wary sentiment on the U.S. dollar as President-elect Joe Biden is set to announce a new coronavirus stimulus package reportedly worth trillions of dollars. While official details were still forthcoming as of publication, it was thought that it would include personal stimulus checks of $2,000 to eligible Americans.
“I think positioning in risk assets is becoming a concern, so there could be a squeeze in the dollar near-term,” Shusuke Yamada, chief Japan FX strategist at Bank of America in Tokyo, told Reuters about the U.S. dollar outlook. “I am focusing on gradual dollar weakness in 2021.”
The U.S. dollar currency index (DXY), with which Bitcoin traditionally shows inverse correlation, nonetheless continued its march higher on the day prior to announcements from Washington.Bitcoin exchange outflows chart. Source: CryptoQuant
Accompanying that rise was a similar rebound in funds removals from Bitcoin exchanges. As noted by on-chain analytics resource CryptoQuant, a single hour on Thursday saw “unusual” outflows from three large trading platforms, indicating mass-buying had taken place.
Binance led the interest, with 6,051 BTC ($233 million) withdrawn during that time, followed by BitMEX with 951 BTC ($37 million).”If it’s an OTC deal, it would be a bullish signal as institutional investors are buying.”
“Binance sent BTC to a couple of unknown cold wallets. These transactions could be related to internal transfers or OTC deals,” CryptoQuant CEO Ki Young Ju told Cointelegraph in private comments.
As Cointelegraph reported, similar spikes in exchanges’ outflows have occurred during recent upward price trends.