A blow-off top may yet appear but market composition has changed and
20% dips are being bought with "aggression," says filbfilb.
With
market participants keen to know what will come next, filbfilb told
Cointelegraph that a new style of buying was fuelling repeated all-time
highs. As with any market, however, vertical gains could not 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 form a blow off top, but how high that could go is anyone's
guess," he said.
"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."
This automated trading style itself points to a new class
of investor needing to enter the market with larger amounts, rather
than 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.
Upside in "uncharted territory"
At $40,000, meanwhile, a single bitcoin passed the value of the United States median annual salary for the first time.
The largest cryptocurrency's 2021 gains alone were in excess of 42% at Thursday's peak of $40,400,
with the pullback that followed amounting to around 9% losses. While
analysts retained the possibility of further corrections, the mood on
Friday was firmly bullish.
"The entire bull cycle we're
experiencing now will be way larger than anyone is expecting it to end
too," Cointelegraph Markets analyst Michaël van de Poppe told Twitter followers.
"Just
like the $20,000 peak high was way higher than everyone expected in
2016/2017 to be the top on Bitcoin. That's how markets work."
Statistician Willy Woo also noted
the lack of references left on the Bitcoin spot chart to calculate
resistance, given the latest all-time highs. Only Fibonacci sequences
remained.
"When there's no historic resistance levels, magic
numbers in nature is all we have for support and resistance bands.
Bitcoin is in unrestrained price discovery in uncharted territory,
literally," he wrote.
source link : https://cointelegraph.com/news/bitcoin-buying-algos-seldom-care-about-price-in-2021-says-analyst
