Bitcoin stabilized near all-time highs on December 17 after 24 hours of intense trading sealed its third-best week in history.
Data from price trackers including CoinMarketCap and TradingView showed BTC/USD trading at just below $23,000 at press time on Thursday.
Trader: Don’t short Bitcoin now
The previous day had seen volatility suddenly explode as Bitcoin knocked over $20,000 resistance in a single sudden move which only reversed at $23,800. That level appeared to put an end to the uninhibited bull run which resulted from BTC/USD, removing the last resistance hurdle on its chart.
With exchange orderbooks still showing little stopping Bitcoin going higher and new support accumulating at $20,000, traders were considering what was next.
As always, Michaël van de Poppe offered a measured reaction, in his latest YouTube update arguing that due to its “overextended” nature, convincing support still lay at the same place as before the bull run — at $19,500.
“People are eager to short #Bitcoin here, while we’re in a bull market,” he nonetheless added in a subsequent tweet.
“In a bull market, the buy the dip approach is the easiest and most efficient way to make money rather than being the hero who shorted the temporary top.”
The concept that, even after a $4,000 daily candle, Bitcoin was not done gaining, held sway among many others.
“Nothing for sale until maybe $28,000,” RT host Max Keiser repeated, while repeating claims from the likes of “The Bitcoin Standard” author Saifedean Ammous about an impending supply squeeze.
Grayscale sees 6X capital inflows
That supply squeeze has its roots in the rapidly-growing institutional FOMO gripping the market.
In the past week alone, existing investment giant Grayscale saw its assets under management pass $13 billion, while major players Guggenheim and One River signalled that they were fully signed up to Bitcoin.
“…I can certainly say that at Grayscale, our flows are now probably up 6X what they were last year and the types of investors that are putting capital to work are unlike any of the investors we’ve seen ever before,” CEO Michael Sonnenschein told CNBC on Thursday.
“It’s some of the world’s largest investors and the allocations that they’re making are bigger than we’ve ever seen before and their time horizon for this is generally something over the medium to longer term.”
For Anthony Pompliano, co-founder of Morgan Creek Digital, this was firm proof that “the institutions are coming.”
“There are well respected investors, who manage hundreds of billions of dollars, calling for $400,000 Bitcoin price on traditional financial channels,” he said about recent comments from Guggenheim.
“This is going to be the mother of all bull markets. Bitcoin is the apex predator of financial assets.”