Bitcoin (BTC), the largest cryptocurrency, has begun to recover from the $42,200 level after sales by speculative investors, signaling the beginning of a new uptrend. Ethereum (ETH), the king of altcoins, is also showing signs of recovery by passing $2,270. While a high amount of fund flow is detected to BTC and ETH, it is expected that this may affect the price of these two major cryptocurrencies.
According to on-chain analyst Ali Martinez, on December 14, Bitcoin and Ethereum witnessed fund flows of more than $19.7 billion. This amount is reminiscent of the influx of funds observed before Bitcoin's rise from $18,000 to $65,000 three years ago. If historical patterns repeat, it may be possible for the largest cryptocurrency to reach new highs following a similar trajectory to the 2020 cycle.
Greek analysis platform Greek.live announced that BTC options stood out in the mid-week rally, accounting for 50% of the total volume. Half of the transactions in the options market were carried out by one whale in particular, who preferred to take long positions in the rising market that lasted until the end of 2023.
Bitcoin's current strong rally has slowed slightly as short-term investors began to realize their profits. This triggered the third sharpest selling wave of 2023. According to analysis by on-chain data platform Glassnode, Bitcoin has entered a short-term exhaustion phase after reaching a yearly high of $44,500. Additionally, the decrease in BTC supply on cryptocurrency exchanges reflects the sensitivity of investors to protect their assets and the decrease in the desire to sell.
Many market commentators have made optimistic price predictions for Bitcoin recently, stating that they expect the largest cryptocurrency to surpass the $42,000 to $45,000 range by the end of next week. From now on, they expect that there is no significant hurdle until $63,000 and the price will rise to this level. Additionally, BitMEX co-founder and former CEO Arthur Hayes reiterated his prediction that the Bitcoin price will eventually reach $1 million and continues to link this to general economic changes in the value of national currencies.
