The Wednesday trading session saw a small increase in the price of Bitcoin as purchasers continue to take advantage of this market whenever it opens. Having said that, bear in mind that most of this is driven by Wall Street.
Bitcoin Continues to See Bullish Pressure Despite Huge Run Higher
As you can see, the early hours of Wednesday saw a small rally in the Bitcoin market as we continue to move higher. Though it appears that volatility is still present, we are getting close to all-time highs, which may be contributing to the market's current woes.
Significant inflows are observed in the ETF version of this market, necessitating increased Bitcoin purchases. The longevity of this trend remains a question. While there's belief in some level of support from Wall Street, it's common for these financial entities to accumulate assets like Bitcoin, only to sell them later to the public for profit maximization.
The stock market has rebounded. remarkably much since Halloween. And as you can see, based only on this year's gains, we're up over 80%. It's clear that the ongoing upward trend we've been experiencing for the past several weeks cannot endure forever.
The aggressive behavior on Tuesday wasn't meant to be a warning shot. Purchasing Bitcoin all the way up here would require extreme caution because, to put it mildly, it is an incredibly volatile asset even in the best of situations. Furthermore, Wall Street is merely engaging in speculative money. In terms of the use case scenario, nothing has changed.
Indeed, one may argue that Bitcoin serves no purpose. Thus, it will be interesting to see how this develops and whether it turns out to be something more durable or just another bubble that bursts repeatedly. You definitely need to be more of a buy on the dip trader as things stand right now. If you chase it all the way up, your trading account will inevitably suffer losses.
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