The first and largest cryptocurrency, Bitcoin (BTC) climbed to a new all-time high of $27,521 today, Dec .27. The main catalyst behind Bitcoin’s broader rally was noted to be the high institutional demand for BTC.
An analyst ascribed a short-squeeze caused by sellers who sold close to the prior high to be the likely primary reason for the Bitcoin surge to highs past $27,500. Derivatives data indicated that above $131 million worth of Bitcoin futures contracts were liquidated in the last 24 hours.
What Analysts Are Saying on Bitcoin Price and Altcoins in the Near Term
Meanwhile, analysts generally remain bullish on Bitcoin’s price trend. Traders are also becoming cautious about shorting Bitcoin because it hasn’t peaked yet. Until BTC reaches a certain peak, the chances of a further rally in the near term remain high. Michael van de Poppe stated:
“The higher we go, the higher the next impulse move will bring us. If $25,800 is this temporary top, next impulse could bring $BTC towards $40,000+.”
The next logical top for Bitcoin is likely to be when institutional buying of Bitcoin slows down, as can only be indicated by the CME Bitcoin futures market volume and grayscale BTC inflows.