Bitcoin is reportdly close to a blow-off top price implosion, but investors are still aggressively buying the dip according to the latest reports.
While speaking to Cointelegraph back on January 8, analyst FilmFilm revealed that Bitcoin has been due a corrective phase given the pace of recent gains, according to the online publication.
It’s been also revealed that on Thursday, this week, BTC/USD exceeded $40,000 before a spectacular reversal saw a $2,200 drawdown in under five minutes.
“Thereafter, fresh attempts to flip $40,000 to support were met with rejection, and publication-time levels circled $38,400,” they also noted.
More than that, with market participants being keen to know what will be coming next, FilbFilb told Cointepegrah that there’s anew style of buying that’s fueling new ATHs.
Vertical gains cannot last forever
But, the same online publication also made sure to note the fact that vertical gains cannot last forever.
“Bitcoin has continued to make increasingly smaller consolidations after failed sell-off attempts. This points to a climatic conclusion at an increased probability in terms of time. I don’t think we are far from a blow-off top, but how high that could go is anyone’s guess,” he said.
He also pointed out that “In terms of a correction, all we know today is that 20% corrections are bought with aggression. Until that changes, then I hate to use a cliche, but the trend is your friend.”
It’s also been revealed that this automated trading style itself points to a new class of investor who is needing to enter the market with larger amounts.
This is compared to the casual manual exposure which characterized the 2017 rush to $20,000.
“It was more that there are still obvious signs of accumulation algorithms and that accumulation algorithms seldom care about the price when their goal is to invest X$ in Y time period,” Filbfilb added.
We suggest that you check out the complete article posted by Cointelegraph in order to learn all the details.