08.12.202023:21 Forex Analysis & Reviews: Bitcoin whales prepare for new heights

The current correction made it possible to enter the crypto market with a discount of 15%-35%, depending on the trading instrument.

Most crypto-currencies, including Bitcoin, have already played out the correction and are preparing for new achievements.

Bitcoin – 17.0% correction, 22.5% recovery%

Ethereum – 23.2% correction, 32.5% recovery

Litecoin – 31.0% correction, 44.0% recovery

Yearn. Finance – 38.5% correction, 74.0% recovery

The correction for Bitcoin, which appeared on the market near the historical maximum, made it possible for the market giants to remove the cream from their large wallets, which has not moved for several years. Access to such impressive volumes was released by BTC, which was used by institutional investors, absorbing the sale of Bitcoin whales on the approaches of the quote to $20,000.

MicroStrategy, listed on the NASDAQ exchange, acquired an additional 2,574 BTC ($50 million) at the time of the correction, strengthening its position in the crypto industry. At the moment, the organization owns a total of 40,824 BTC. After that, it is said that MicroStrategy has the intention to raise $400 million for additional investment in Bitcoin.

The head of the company, Michael Saylor, said in an interview with Bloomberg that investing in cryptocurrencies was one of the surest decisions. MicroStrategy earned nine times more on investments in Bitcoin compared to 2019.

In turn, the management company, Grayscale Investments, acquired another 7188 BTC in its Bitcoin trust in just one day. The most striking phenomenon is that they purchased 55,015 BTC in November, which is almost twice the amount of mining during this period (27,881 BTC).

Such impressive figures indicate that institutional investors are firmly engaged in the crypto market. This not only gives an impetus to the development of the crypto environment but also serves regulations and increases confidence in new types of exchange instruments.

PayPal, which recently opened access to cryptocurrencies for its millions of customers, conducted a survey on whether users of their network are ready to pay for purchases and services with bitcoin. The results of the survey are striking: 65% of customers of the payment company said that they are ready to make payments in cryptocurrency. Let me remind you that PayPal allows you to pay with cryptocurrency in 28 million retail outlets.

The news from the Swiss stock exchange (SIX), which plans to give banks full access to digital assets, deserves a special mention today. Banks and their clients will be able to take advantage of trading, smart order routing, settlement, and storage of cryptocurrencies. Aside from this, there will also be access to secondary markets through the so-called institutional gateway of digital assets.

Once again, we confirm the antifragility status of the crypto industry.

"Everything that doesn't kill us makes us stronger" is a well-deserved slogan of cryptocurrencies and the entire industry as a whole.

Trading prospects

The Bitcoin quote recently updated the historical maximum of 2017 which was $19,891. Now, the new maximum is $19,916 (Coinbase). In fact, market participants are faced with an area of psychological value of $20,000, which deters buyers from the subsequent upward move.

I assume that this psychological level will not last for long. The market is still on a bullish wave. Trading volumes are replenished by both institutional investors and young blood, which as a result will lead to an update of the current maximum and a breakdown of the psychological level of $20,000. There is a chance of a breakdown until the end of 2020.

The most noteworthy point is the high level of HYIP, where global media publish news about Bitcoin on a daily basis, which positively affects the flow of cash injections into the crypto market.

The prospect of growth is quite wide, Many write them to be at 25,000, 30,000 and even 100,000 Dollars for one Bitcoin.

Do not forget to skim the cream from your profitable positions from time to time and to regroup the trading forces of the deposit during corrections.

General background of the crypto market

Analyzing the total market capitalization of the crypto industry, you can see that the total market has gained more than $50 billion in weight since our last article. At the moment it is at $553 billion.

The absolute maximum of the crypto market from January 2018 is still not broken. Our goal is not $831 billion anymore but $1 trillion.

The index of emotions (fear and euphoria) of the crypto market is still at the level of FOMO* (lost profit Syndrome*) which is 95 points. This means that the market is very active and the quote is conducive to growth.

Indicator analysis

Analyzing different sectors of timeframes (TF), it is clear that four-hour period is in the stage of rollback/stagnation. The daily and weekly periods follow the uptrend, signaling a purchase.