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Bitcoin continues to rise targeting the $24,000 level
Bitcoin continues to gain bullish momentum, as it managed to cross the resistance levels of $ 23,000 and $ 23,500, and is currently trading well above the $ 23,800 level, but it may face obstacles to surpass the $ 24,000 level.
After the sharp decline in the currency after it reached an all-time high of $ 24300 on Saturday, the currency found support near the level of $22350, and in no time managed to gain upward momentum above the resistance level of $23500.
The current trend of Bitcoin is largely driven by institutional investors, analysts believe that in order for the rally to continue, new institutional money must continue to flow as it has in the past few weeks or the currency may undergo a correction.
Each bullish stage sees many sharp corrections and the current bullish trend in Bitcoin is likely not an exception, however, when the main trend rises, investors view the dips as a buying opportunity as it provides a low-risk entry point, so if the correction takes place it is likely to show many. New investors are interested in keeping their uptrend intact.
Bitcoin wallets and lost currencies
Recent research reports have indicated that bitcoins may head towards a supply crunch and bullish liquidity, and this conclusion was reached after reviewing recent developments in the currency including institutional adoption, bitcoin traders, exchange balances, and supplies of miners.
The research indicated that the known maximum supply is 21 million bitcoins, but the real figure is much smaller, as at least three million coins are lost and unrecoverable, which represents about 16% of the hardcover, and the report stated that there are wallets called Bitcoin accumulation addresses Which contain 2.7 million coins, these wallets only received the cryptocurrency and did not spend any money holding 14.5% of the bitcoin supply.
The number of bitcoins stored on cryptocurrency exchanges has decreased by 20% since the beginning of the year, and this has been classified as “the longest exhaustion of exchange funds”, as investors are constantly shifting their holdings into long-term stores. Ultimately, this means that the liquidity on the trading exchanges has increased. Dramatically reduced this year.
The leading cryptocurrency has seen a massive entry for corporations, major institutions, and prominent investors in the past several months, names like MicroStrategy Corporation, Square Corporation, insurance giant MassMutual, hedge fund One River Asset Management, and Guggenheim’s giant Wall Street partners have bought into billions of dollars in bitcoin.
Additionally, pioneering digital asset manager Grayscale had a growing role, with the company purchasing nearly 210,000 Bitcoins for its clients in the past six months, and interestingly enough, this amount has already surpassed the number of coins since then by around 185,000 Bitcoins.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.