Crypto Industry News:
OKEx Insights researchers looked at on-chain data from the Catallact financial intelligence platform. The report noted that the number of transactions above 1000 BTC increased from just over 5% to over 45% in September 2020 and remained in the range of 30% -40%.
"The lesson we can draw from this data is that institutional investors really fell into the BTC space after Paul Tudor Jones announced his entry - and they didn't stop when 2020 drew to a close. Additionally, we can assume that institutions were at the end of the offer spectrum and were buying large amounts of BTC - as opposed to selling - as the price of the leading cryptocurrency rose parabolically throughout the fourth quarter of 2020. "
To underpin the analysis foundations, OKEx compares on-chain data to some large, verified institutional purchases.
"To start with, we know for sure that MicroStrategy, a business intelligence, mobile software and cloud services company, invested large sums of money in BTC last year. In August 2020, the company purchased 21,000 coins for $ 250 million. This coincides with the increase in large transactions in the above-mentioned charts.
The next few purchases from MicroStrategy took place in 2020. On December 5, the company purchased 2,574 BTC for $ 50 million at an average price of $ 19,427 per coin. Later, on December 22, she bought a further 29,646 coins for $ 650 million at an average price of about $ 21,925 each. Moreover, Massachusetts Mutual Life Insurance Company invested $ 100 million in BTC in December. At that time, more and more institutional investors entered the market. "
The report also looks at the selling side to see which entities have liquidated their resources while institutions have been buying large amounts of BTC. Researchers found that the average age of BTCs involved in trades increased in October 2020 and remained high until the end of the year, suggesting that long-term breeders started selling.
"As the supply side of BTC failed to meet institutional demand, as the leading cryptocurrency entered the discovery phase of previously unknown price levels, the coins sold apparently came from both long-term Bitcoin holders and miners. In other words, the old bitcoiners have sold some of their old resources to new institutional buyers [...] - for good or bad.
Technical Market Outlook:
The BTC/USD pair has broken through the long-term trend line resistance around the level of $36,872. The new local high was made at the level of $38,677 in form of a Pin Bar candlestick. If the level of $38,862 is clearly violated, then bulls might rally straight back to the recent local high located at $39,967 and even break higher. Please notice, the momentum on the RSI indicator is strong and positive, so the bulls are doing their best to resume the up trend.
Weekly Pivot Points:
WR3 - $46,671
WR2 - $42,502
WR1 - $37,109
Weekly Pivot - $33,428
WS1 - $27,789
WS2 - $23,603
WS3 - $18,571
Trading Recommendations:
Despite the recent corrective cycle the bulls are still in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.
