Inches Away From $35,000 As BTC Finished Its Consolidation

Bitcoin is inches away from reaching the $35,000 price level as it did hit $35,800 overnight but went on a consolidation phase and retraced to $34,000. A new breakout is waiting to happen so let’s read more in today’s BTC news.

BTC’s rally seems to be a byproduct of news that the current election in Georgia could bring victory to the democratic candidates which will determine the state of the Congress in the years ahead. This “blue wave” is expected by the pundits that will lead to even more monetary and fiscal stimulus than if the Republican senate wins. It’s worth noting that counting the votes is not done as it was temporarily paused as the pollsters will come back tomorrow. According to Ki Young Ju, the CEO of CryptoQuant, the institutions as still accumulating BTC at a rapid pace.

FYI, Coinbase outflow on Jan 2 was an all-time high. It seems institutions bought $BTC when the price above 30k.$BTC bull market isn't over.

Chart 👉 https://t.co/OFT33lQycF https://t.co/BSJWHIBKfp pic.twitter.com/pMGbLESMX0

— Ki Young Ju (@ki_young_ju) January 5, 2021

He noted that there was a huge amount of BTC that left the US-based exchange Coinbase at the start of the month and the number of coins that were withdrawn amounted to over 55,000 tokens on that day, which is the largest day of outflows recorded on the platform. Many saw this as a sign that the institutional players are buying BTC en masse which is why BTC is inches away from hitting higher than $35 soon after the consolidation phase.

As recently reported, One analyst explained that he is watching for the entire market to see prolonged weakness noting that the high funding rates on margin trading platforms indicate that a new wave of selling pressure could be imminent. With all that being said from a technical standpoint, BTC seems to be building more strength as its recovery from the overnight drop below $30,000 is picking up. Where will the market trend give us some serious insight into the aggregated markets’ mid-term outlook. At the time of writing, BTC is trading down under 5% at a current price of $31,600 which is where it has been trading over the past few days but does mark a drop from its recent high of $35,000. The market trends depend on whether or not the bulls can confirm that the lower $30,000 region is a strong support zone. The continued bout of trading here follows the dip below this level which is a promising sign.