The Bitcoin price rose to $40,099 in early trading on January 14 This marks a quick turnaround from the recent drop below $31,000 and shows that professional and retail traders want to see higher BTC price growth despite this week's massive liquidation of $1.5 billion.
Establishing $40,000 as support is an important psychological level and key support that traders are watching. If investors are able to flip this level into support, then extending it to $45,000 is the line of thinking for many investors.
While the previous rally above $40,000 was driven in part by a wave of buying from retail investors, Guy Hirsch, managing director of eToro's U.S. wing, sees institutions as the driving force behind the current rally. According to Hirsch, "it would not be a surprise to see a new all-time high this weekend or even before."
It is noticeable that BTC is not the only one receiving institutional attention as the current market cycle progresses. Denis Vinokourov, head of research at Bequant, sees the upward trend as a positive for the cryptocurrency ecosystem as a whole.
