On January 14, Bitcoin’s price extended its recovery, reclaiming the $38,000 mark. After the 28 percent drop earlier this week, the weekly candle has now turned green for the fifth consecutive week.
Stablecoin deposits, meanwhile, according to CryptoQuant data, are pouring into cryptocurrency exchanges. If it shows that sidelined capital is flowing back into BTC, this inflow will serve as a short-term catalyst for Bitcoin.
Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said prior to the recovery that if it reaches $38,000 again, an all-time high is again possible for Bitcoin.
Bitcoin’s price pierced through the $38,000 resistance range which Van de Poppe pinpointed. Therefore, BTC is on track to retest its record-high in the short term. He said: “Bitcoin didn’t change much. It flipped the $33,000 level for support and therefore is eager to test the $37,000-38,000 level. That one needs to flip. If it does, we’ll be eager for new all-time highs. If not, more consolidation likely.”
The Bitcoin rally also correlates with the opening on January 13 of Grayscale’s products. If the valuation of Bitcoin continues to grow, the Grayscale Bitcoin Trust will propel more institutional and approved investors to gain exposure to BTC (GBTC).