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Adam Back has revealed the reason for the rise in the price of Bitcoin

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On December 25, Bitcoin set three new all-time highs at $ 24,700, $ 24,800, and finally $ 25,000. On December 26, Bitcoin reached $ 25,900 on Binance for the first time and is still trading above $ 27,700 as of this writing.

According to Adam Back, a popular investor and co-founder of Blockstream, this most recent increase in the price of Bitcoin was not due to institutions.

Back says it was retail that did it, that is, "people around a keyboard." Most of the analysts; However, they agree that institutional interest in the digital asset was a key factor throughout 2020. In addition, prominent companies and firms have announced their support for Bitcoin and other cryptocurrencies, especially PayPal.

First it was only rumored that PayPal would support cryptocurrencies. Finally, the company made the official announcement, which also served as the spark of the most recent rally that is taking the price of Bitcoin to new highs almost every day.

Will Bitcoin's price face a massive correction?

Of course, most analysts and investors fear a possible significant correction for Bitcoin, as the digital asset has been trading within a strong uptrend for the past few months with very few correction periods in between.

BTCUSDT Chart by TradingView

When it comes to technical analysis, it appears that the 12-EMA on the daily chart will serve as a significant support level in the event of a correction, it currently sits at $ 25,160. Further down, we can find the 26-EMA that has served as the most critical support level throughout the rally and is set at $ 23,407.

The loss of the 26-EMA would be the most significant bearish indicator, which means that the price of Bitcoin could fall to $ 23,407 and remain bullish.

We recently heard that the Bitcoin trust fund at Grayscale has acquired around 12,319 more BTC in just 24 hours. The asset management firm has more than $ 14 billion in crypto assets with close to 600,000 BTC. The grayscale has also been a key factor in the current rally.



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