Bitcoin has just reached a new all time high of $72,710.68 breaking the pattern of Bitcoin in the last couple of bull markets. 

The price surge happened from the positive narratives that are currently happening around Bitcoin reassuring retail investors that the market is still in good condition to push Bitcoin’s price to as high as $100,000. 

Although this might be the case, currently the market is not sure if the impact of institutional investors is still as prominent as the surge before, giving hints of potential correction if the market is only relying on retail investors. 

Bitcoin Reached an All Time High

Bitcoin has just reached an all time high across all platforms including on CoinGecko which before showed that the all time high has not been reached when Coinmarketcap showed that Bitcoin had already hit an all time high. 

Currently according to CoinGecko, the all time high of Bitcoin stands at $72,710.68 which was reached around March 11th, 2024. 

The price increase happened in continuation of the current Bitcoin price surge that has been happening since the last quarter of 2024. 

Most of the volume that pushed Bitcoin’s price upwards came from institutional investors by buying Bitcoin Spot ETFs. 

The current inflows of Bitcoin Spot ETF on a daily average has reached around $500 Million which means that there are Institutional investors buying Bitcoin at a rate of an average $500 Million per day. 

The condition has created a positive sentiment around Bitcoin retail investors which led to traders opening derivatives positions with high leverage. 

Last week, when Bitcoin moved above $69,000, there were more than $1 Billion of futures contracts liquidated which is usually a sign of potential correction. 

But this week, the price of Bitcoin seemed to rise even further, reaching an all time high, liquidating traders who had opened short positions in the futures market. 

Currently there are speculations of potential correction after this new all time high, which came from the narrative that institutional investors are no longer supporting the pump. 

Institutional Investors Slowing Down?

According to data from Dune Analytics, currently the transaction volume of Bitcoin Spot ETF is decreasing, with the netflows going further down, meaning there are less buying volume than before. 

The data suggested that potentially institutional investors are waiting to capitalise their profit after retail investors continue pumping the price upwards. 

This is a common movement in the crypto market, where institutional investors create a feeling of safety for retail investors to FOMO in and then suddenly dumps the market, leaving losses around retail investors. 

Potentially, this might be the case as the price increase that is supported by retail investors will not usually be as strong as when it was supported by institutional investors. 

Also, with the price increase only being supported by retail investors, it is usually more fragile, hence why it is prone to corrections. 

Looking at the weekly chart of Bitcoin, it seems that Bitcoin is having a hard time pushing through the resistance of $69,00 which is the current resistance holding Bitcoin from going even higher. 

The RSI indicator has shown that buying volume currently is standing at an overbought position which usually shows signs of potential correction. 

But, looking at the monthly chart, the buying volume seems to not be standing at an overbought condition yet, so there might be potential price increase continuation before the market really goes down. 

Looking at past movements, usually the price goes down after halving occurs, which arguably will also happen in this year’s cycle. 

For now it is better to be safe and look for other alternatives in the crypto market, such as altcoins, if you want to continue to look for profit. 

This is because Bitcoin seems to have peaked in the short term, where usually all the capital will flow into other cryptocurrencies. 

But during this time, it is better to still keep risk management in mind and stick to the original strategy that was planned and not FOMO because of the current market condition. 

It is better to miss out in the short term and still have capital to capitalise in the long term so investors and traders need to stay safe and stay away from FOMO.