Price analysis 1/6: BTC, ETH, XRP, LTC, ADA, DOT, BCH, XLM, LINK, BNB – BTC Ethereum Crypto Currency Blog

January 6, 2021 by No Comments

Bitcoin’s slow crawl toward $36,000 has given select altcoins the green light to rally higher.

Aggressive buying by institutional investors is one of the main reasons for the current Bitcoin (BTC) bull run. Some investors expressed their intent to hold their positions for a few years, but it is also prudent to note that many of these investors have recently developed a love for Bitcoin and their conviction to HODL may not resemble that of the early Bitcoin whales.

The current bull market could also differ from the last as institutional investors simply cannot hold on to their positions if Bitcoin unexpectedly enters a sharp correction. These fund managers will have to face angry clients if Bitcoin’s performance wanes, thus it’s important to keep a level head when considering the lofty price estimates being thrown out by analysts. 

Bitpay’s chief commercial officer Sonny Singh said in an interview with Bloomberg that if Bitcoin’s rally continues, the institutional investors may be tempted to lock in their gains and are unlikely to HODL for the long term.

If that happens, the markets may have to deal with a huge amount of selling, which could result in a sharp fall unless new institutional investors or long-term Bitcoin whales step in and buy.

Daily cryptocurrency market performance. Source: Coin360

A few metrics such as rising futures open interest and a high funding rate suggest that traders are taking aggressive bullish bets on Bitcoin’s rally continuing. As has occurred in the past, a sharp downturn in Bitcoin price could result in leveraged players facing a massive long liquidation.

Therefore, it only makes sense that at this juncture, traders exercise caution and use proper money management principles to protect their paper profits.

While Bitcoin’s rally toward $36,000 may have slowed down, several altcoins are skyrocketing. Let’s study the charts of the top-10 cryptocurrencies to determine the possible target levels on the upside.