Alex Saunders from Nugget’s News has made a quick update on touching all time highs overnight and what might happen next.
Alex mentions Bitcoin monster rally from $38,000 to $48,000 in 24 hours off the back of Elon Musk Tesla news of acquiring $1.5B worth of Bitcoin is really amazing stuff.
Alex says what he has been mindful of is in the past in other markets [in comparison], we are a lot closer to a top or big throwback after going up $10,000 in 24 hours [Bitcoin] and funding rates are through the roof [Perpetual contracts].
Onchain analysis is showing us things are healthy with hodlers sending their coins from exchanges to wallets but miners are selling all the coins they have accumulated to pay for the cost of mining and new hardware.
Alex says smart money and other institutional investors after the Tesla news are going to wait for a pull back because he doesn’t think they will rush in and buy a parabolic chart.
He believes it will be hard for retail investors to maintain Bitcoin current level because unlike the cycle in December 2017 where people bought from $1-6,000 all the up, the current level is a big market cap [nearly $1trillion] of unrealised gains.
Alex warns retail investors to be realistic and not do anything stupid with leverage and longs at this range.
Money will go into Bitcoin then rotate to ETH and flow into other large cap coins like Binance Coin, Cardano etc.
This episode premiered on February 9th, 2021.