The total cryptocurrency market capitalization is dorsum above the $1 trillion level as Bitcoin (BTC) bulls pushed the cost back to $40,000 on Jan. 14.

Daily cryptocurrency market performance. Source: Coin360

Bitcoin price rallied to $40,099 in the early trading hours on Jan. 14 co-ordinate to data from Cointelegraph Markets and TradingView earlier pulling dorsum to $39,500. This marks a rapid turnaround from the contempo driblet below $31,000 and shows that professional and retail traders are keen to see BTC price rise higher despite this calendar week's massive $i.5 billion liquidation.

Establishing $xl,000 every bit support is an important psychological level and a key support that traders are watching. If traders are able to flip the level to support, then extension toward $45,000 is the line of thinking followed past many traders.

BTC/USDT 4-hour chart. Source: TradingView

While the previous rally above $40,000 was driven in part by a flurry of buying from retail investors, Guy Hirsch, the managing director for eToro'due south U.South. fly sees institutions every bit the driving force behind the current rally. Co-ordinate to Hirsch, it "wouldn't be a surprise to run across a new all-time loftier during or even before this coming weekend."

In private comments to Cointelegraph, Hirsch said:

"The smart money never stopped allocating to Bitcoin fifty-fifty as the late-stage retail traders that helped enable the last rally to push above $40,000 were largely shaken out. Now momentum is clearly bullish again, and price action is reflecting this sentiment."

Institutions continue to buy Bitcoin

While Bitcoin's contempo cost volatility has given some of the newer institutional investors a cause for a pause, the more seasoned of the financial powerhouses bought the dip from the weak hands, taking full reward of the sharp downturn.

Noticeably, information technology's not just BTC that is receiving institutional attention as the current market cycle progresses. Denis Vinokourov, head of research at Bequant, sees the growing tendency as a positive development for the entire cryptocurrency ecosystem.

Vinokourov said:

"Open up interest on Bitcoin futures may be on a relentless surge higher, but this did non forbid upper-case letter from too flowing into altcoins and relevant derivatives products. This, in turn, suggests compartmentalization, targeted asset allocation, and further maturation of the broader market."

It'south 50/50 from here

As reported past Cointelegraph, since BTC's drib on Jan. 11 some of the more than prominent figures in the space have been more bullish than ever and are likewise calling for Bitcoin to reach a new all-time high in the almost time to come.

Decentrader founder filbfilb said, "The immediate futurity for the top cryptocurrency is "50/fifty as to what happens at this point." A movement above $twoscore,000 will institute a new support level at which point "retest of the all-time high is very likely."

In a private conversation with Cointelegraph the annotator stated:

"Cost activity is very similar to both the $35,000 rejection and correction and also that of $20,000. At $35,000 we blasted through; at $20,000 we needed to retest the lows."

Regardless of what happens, the analyst sees $40,000 equally a "key pin point which volition dictate the next couple of weeks."

BTC/USD daily chart. Source: Coin360

Altcoins are too seeing positive toll action for a third twenty-four hours in a row. Ether (ETH) rose by 9% to $1,245 and Polkadot (DOT) found additional momentum as it rallied 33% to a new high at $14.92.

The overall cryptocurrency market place cap now stands at $1.04 trillion and Bitcoin'due south potency rate is 69.1%.