Can Large Investors Influence Bitcoin’s Value? Will BTC Sustain Its Price Above $80,000?
The anticipation surrounding Trump’s potential impact on the cryptocurrency market has fueled a surge in Bitcoin (BTC) that is inching closer to the $80,000 mark.
While the market has not yet reached an overextended state, its high-risk nature may dissuade certain investors.
Investor Robert Kiyosaki has stressed the importance of avoiding wishful thinking and focusing on solid investment principles, irrespective of the current price.
Conversely, another respected analyst has urged caution as Bitcoin nears a significant historical threshold.
Amid these intense circumstances, CryptoCrypto has examined the prevailing market trends and deduced that a concealed catalyst is required to shield Bitcoin from a potential downturn.
Market Preparedness for Volatility
During the previous presidential election, it took approximately two months of erratic price movements to propel Bitcoin to a value of $40,000 for the first time, marked by noticeable declines along the journey.
In the current scenario, although the recent surge has displayed more consistency with an upward trajectory over the past five days, the stakes are amplified due to Bitcoin’s existing value.
As Bitcoin approaches $80,000, the risks heighten, and any retracement could trigger substantial market responses.
An element contributing to this uncertainty is the elevated leverage ratio in perpetual trades, as disclosed in a separate CryptoCrypto report, rendering BTC susceptible to sudden fluctuations.
Presently, a significant portion of the volatility stems from activities on major trading platforms such as Binance and OKX.
The percentage of traders opting for long positions has notably decreased, while short positions are witnessing a robust resurgence, paving the way for a potential long-squeeze.
This scenario mirrors the late-October period when Bitcoin surged to $72,000, only to retrace to $67,000 within a week, as depicted in the above chart.
During the election hype, a surge in investors taking long positions led to record-breaking short liquidations totaling approximately $371 million.
Nevertheless, these long positions could be vulnerable if FOMO subsides, buying interest wanes, and the market overheats, particularly as the RSI lingers in the overbought territory. Consequently,
Bitcoin Requires a Stimulus to Alleviate Pressure
In the aftermath of the election, substantial Bitcoin transactions surged, peaking at $90 billion, indicating a sharp rise in whale activity. Their assessment of the existing price as an opportune entry point is more critical than ever.
An analysis by CryptoCrypto shows that the current accumulation by whales mirrors the March peak when BTC achieved its all-time high of $73,000.
Nevertheless, the peak was succeeded by a retracement, partly fueled by fluctuations in the derivative markets, as previously discussed.
Therefore, to sustain Bitcoin above $80,000, consistent backing from significant HODLers is imperative. This aspect warrants close monitoring in the days ahead.
All in all, Bitcoin retains a positive outlook, with a possibility of a short-term surge beyond $80,000.
However, with escalating volatility and mounting short positions, the steady accumulation by whales is paramount in mitigating pressure and upholding a sentiment of market stability—particularly given the high stakes at play.