March 1, 2021

Bitcoin chases new high as analyst says ‘smart money never stopped’ buying

The total cryptocurrency market capitalization is back above the $1 trillion level as Bitcoin (BTC) bulls pushed the price back to $40,000 on Jan. 14.

Daily cryptocurrency market performance. Source: Coin360

Bitcoin price rallied to $40,099 in the early trading hours on Jan. 14 according to data from Cointelegraph Markets and TradingView before pulling back to $39,500. This marks a rapid turnaround from the recent drop below $31,000 and shows that professional and retail traders are keen to see BTC price rise higher despite this week’s massive $1.5 billion liquidation.

Establishing $40,000 as support is an important psychological level and a key support that traders are watching. If traders are able to flip the level to support, then extension toward $45,000 is the line of thinking followed by many traders.

BTC/USDT 4-hour chart. Source: TradingView

While the previous rally above $40,000 was driven in part by a flurry of buying from retail investors, Guy Hirsch, the managing director for eToro’s U.S. wing sees institutions as the driving