Bitcoin came close to touching the $105,000 mark on Sunday, reaching an intraday high of $104,958 on Bitstamp. This move pushed the number of daily closes above the $100,000 level to twelve, reinforcing the strength of Bitcoin’s current uptrend.
Although the milestone was attained, retail traders’ involvement was particularly poor. Trading volumes remain weak, and there is a lack of zest for media mentions of and by ordinary investors. Compared to previous rallies, this silent market starkly contrasts with the weight retail traders carried in the price movements.
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The low funding rates that are still widespread suggest that traders avoid borrowing on margin too recklessly. Several experts, therefore, advise that if there is a further spike in participation, it could come quickly and very strongly. Writing for Fundstrat, Tom Lee finds it surprising that there is no trading volume even though Bitcoin has increased in value in the shortest time in recent years.
Experts in chart analysis are monitoring the situation to identify any signs of market fatigue. Todd Butterfield, who specializes in charts, notes that Bitcoin’s recent rise has moved the cryptocurrency into minor overbought territory. He warned that a slight correction may occur if the level of trading activity is no longer ascending.
Source: Todd Butterfield
Market Signals Suggest Institutions Are Leading the Rally
So far, institutional demand has been a significant factor behind the recent price increase. With retail investors showing limited activity, the rally has lacked the full market support typically seen during bull runs. Analysts believe that Bitcoin may face challenges in breaking new all-time highs without broader participation.
A 2011 Reddit post recently resurfaced, adding a refreshing pendulum to the overall market temper. The post’s author envisioned that Bitcoin would equal $100,000 in 2025. The person who published the post recently admitted selling most coins and only keeping a small share.
Market analysts are keenly watching the retracement trends. Today’s mixed messages from overbought indicators and market sentiment suggest that Bitcoin may pull back before it rises further.
Whereas Bitcoin is contemplating significant price milestones, its trendline could be challenged by the lack of retail participation. As institutional players are practically dominating the market, there is much anticipation as to whether and how much retail interest will be resumed.
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