Bitcoin (BTC) Price Surge: More Upside Potential or a Deeper Correction Looms?

In true bull market style, Bitcoin is making all-time high (ATH) after all-time high. In the wee hours of Wednesday, the OG crypto reached an unprecedented US$108

Bitcoin price hit an all-time high again on Wednesday morning, reaching an astronomical price of US$108,268 (AU$170,828). However, at the time of writing the price per BTC has dropped again, currently trading at US$106,211 (AU$167,610).

The price rally comes on the back of several bullish announcements, including Donald Trump joining the Nasdaq 100 and MicroStrategy’s ongoing BTC buying. According to Arbelos Markets president Shiliang Tang, the capital rotation has largely benefited BTC dominance.

“MSTR’s continuous BTC buying and the Nasdaq 100 addition both occurred in 2020, during which BTC’s dominance rose sharply,” said Tang.

“This year, MSTR has announced plans to join the Nasdaq 100 again, and we’ve seen BTC reach new ATHs and further pulling in more capital from the markets.”

But Crypto Twitter analyst RektCapital has warned that, historically, drawdowns occurred around 6 to 8 weeks after BTC entered price discovery, following the breach of previous ATHs.

The trader noted that a deeper correction could potentially wipe out a lot of the gains made over the past few weeks.

“What matters isn’t if, but when a correction occurs, as every BTC cycle has experienced them,” said the trader.

“It’s crucial to be prepared when a correction comes, whether you’re a hodler or a trader.”

MicroStrategy, Metaplanet and ETFs continue buying Bitcoin

As reported, Michael Saylor continues to add more BTC to MicroStrategy’s (MSTR) coffers, no matter the price of Bitcoin.

And it seems to catch on. Metaplanet, often called the Japanese MicroStrategy, has announced plans for another Bitcoin purchase amounting to ¥4.5 billion (AU$47.3 million).

Metaplanet’s share price has surged over 100% in the past month as it continues to follow Saylor’s Bitcoin-buying strategy.

The US Spot exchange-traded funds (ETFs) meanwhile started the week strong. The most recent trading data shows US$636.9 million (AU$1 billion) in net inflows for Monday 18 December.

BlackRock’s IBIT took the lion’s share, with a whopping US$418 million (AU$659.7 million) in Bitcoin, now holding 2.586% of the total BTC supply, compared to the 5.4% of all the US ETFs combined.