The early hours of Sunday saw Bitcoin set a new all-time high after it successfully broke the $49,000 level. A new high was set at $49,344 before the bearish wind cleared prices with a downward correction.
At report time, the dominant digital asset is trading at $47,549, a positive upward correction from the $46k dip that followed the price rally.
There is significant pressure at this time, and some analysts have asserted that although $50,000 is still likely to be attained at any moment, buying power from Coinbase may have reduced.
The CryptoQuant analyst Ki-Young Ju asserts that buying power from the leading exchange has dropped significantly, thereby hinting that increased volatility could be just around the corner.
Meanwhile, Joseph Young is following a more bullish trail. The analyst who had previously predicted the $48,000 Bitcoin price break expects that a continuous upside swing could send Bitcoin to $56,000 or even higher in the near term.
His tweet reads;
“Here’s what I expect in the market. $48,000 is the key level for Bitcoin. If it stays above it as support, I think it goes to $56k~$60k. Continue to reject $48k will likely result in short-term consolidation / pullback to reach lower liquidity. Let’s pray for $48k+.”
Institutional interest soon to explode
Bitcoin’s price rally has been linked to the rise in institutional interest, which is credited as a key propeller in the asset’s upsurge. The recent price surge comes after Morgan Stanley, a leading global investment firm and wealth manager, with about $150 million under its management, announced that it was considering adding cryptocurrencies to its collection of investment assets. The institutional investment galore has played a major role in triggering a seemingly endless price pump for the benchmark asset.
A while ago, Elon Musk’s $1.5 billion Bitcoin investment, along with the disclosure that the billionaire’s car company Tesla is considering accepting payments in Bitcoin, triggered a much-needed price pump. The devaluation of the USD and the imminent FOMO caused by the mass acquisition of Bitcoin by traditional firms has the potential to drive institutional adoption, which could send Bitcoin prices to higher levels in the long run. Analyst Josh Rager asserts the possibility of this in a recent tweet which reads;
“If Bitcoin crossing $50k doesn’t catch people’s attention Nothing will. I expect more people to want to flood the market in the coming weeks with a BTC price over $50,000+.”
The altcoin market has also recorded its share of ATH over the week. ETH is poised for a breakout to $2,000, while XRP, LINK, and a handful of altcoins continue to record new highs, almost on a daily basis.