“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.
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.”
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Binance led the interest, with 6,051 BTC ($233 million) withdrawn during that time, followed by BitMEX with 951 BTC ($37 million).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.