Despite entering a consolidation period for a week, Bitcoin has still made a strong performance within the short 2021.
However, last week, Deutsche Bank AG released a survey among 627 professional institutional investors, 89% of which believed some assets in the financial market are at bubble stage and pointed out Bitcoin and US technology shares as the biggest bubbles.
The respondents hold that Bitcoin and Tesla would more likely to drop rather than a surge. When it comes to the two’s future move in the following 12 months, they believe both of them will probably slump half rather than doubling.
Per Bitcoin’s recent market performance, the top cryptocurrency by market cap performed weakly since January 8 when hitting a new all-time high of $41,900. Retracing three times after the test of $40,000, it has traded sideways between the range of $36,000 and $40,000 for more than one week.
Some analysts believe Bitcoin will show relatively higher volatility once it breaks through $40,000. This comes majorly from that the token price continuing to surge early makes a large number of profits stored in the market, which also brings a portion of differentiation amid the uptrend.
It is within expectation for such profit-making behaviors to show, since, after all, compared with other markets, profits that existed in Bitcoin’s bull run are beyond imagination. Therefore, after the coin broke through $40,000, the accumulated sell-out sentiment in the market is about to burst, and then a large-scale retracing shows up. This retracing will make the market re-choose the future direction.
Although Bitcoin is on its way to an unprecedented bull run by the mixed impact of reward halving, the low-interest rate in central banks, and institutional investors’ expanding holdings, this bull round will not come in the short-term but rather requiring a gradually and relatively long period.
The current retracing is one of the characteristics of the Bitcoin market, that is to say, by comparison with other financial markets, the exact Bitcoin holdings are not clear to figure out. In spite of institutional investors’ continuous entry, their holdings are hardly able to take the whole market under control. Bitcoin is still likely to suffer from large-scale volatility, which indicates that the Bitcoin market is not so mature as expected.
The future move of Bitcoin is random and hard to predict owing to its unclear holding allocation both in exchanges and OTC.
Currently, Bitcoin’s move is under the triangle consolidation period, and hard to figure out its further direction.
As of this writing, Bitcoin is trading at $34,636, with a 24-hour change of -2.63%.
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Originally published at https://en.icointime.com on January 21, 2021.
