As a seasoned analyst with over two decades of experience in financial markets, I find myself cautiously optimistic about the near-term Bitcoin price trajectory. The recent 10% plunge was undeniably jarring, but the signs of easing sell-side pressure are promising.
As a crypto investor, I find reassurance in the analysis that suggests the upcoming bitcoin price dips might not be as steep as last week’s 10% drop. The reason being, the selling pressure has noticeably reduced post Bitcoin surpassing the six-figure mark for the first time. However, it’s important to note that there are still some skeptics in the market who question this optimistic outlook.
Given that profits are decreasing significantly and there’s intense demand from sellers, it’s likely that any further drops won’t be as sudden or dramatic as the one we saw last week, according to Bitfinex’s analysis in their December 9 market update.
Signals of ‘easing sell-side pressure’ emerges
On December 6th, within a period of more than 24 hours, Bitcoin (BTC) declined nearly 10%, from approximately $103,493 to under $93,000. This drop occurred just one day following its initial surge above the $100,000 price point on December 5th, as indicated by data provided by CoinMarketCap.
According to CryptoMoon’s report, a rapid drop in price from $98,338 to $92,957 caused more than $303.5 million worth of long positions to be liquidated within an hour, raising the total liquidations over the past 24 hours to $404 million.
However, Bitfinex analysts said signs of “market stabilization are emerging.”
“Realized Profit RP, which tracks the USD gains from moved coins, peaked at $10.5 billion daily during Bitcoin’s surge towards $100,000. However, it has since fallen to around $2.5 billion per day, reflecting a 76 percent drop.”
They conveyed that the decrease in profit-making activities is quite substantial, which might mean future selling instances could be less intense or less drastic.
At the time of publication, Bitcoin is trading at $97,483, according to CoinMarketCap.
According to experts at Bitfinex, they believe that Bitcoin’s funding rates are becoming more steady. This suggests that the market is moving towards a more even stage, where volatility might decrease and future price fluctuations could be less abrupt over a prolonged period.
On Binance, the present charging rate for Bitcoin transactions, as indicated by CoinGlass, stands at 0.01%.
However, Glassnode lead analyst James Check remains uncertain about the market stabilizing.
Current sellers’ influence is enormous, in fact, it overwhelmingly outweighs the buying interest from both ETFs and MSTR, as stated by Check in a December 9 post.
“There are lots of heated signals,” Check added.
Long-term holders have been in significant profits
Long-Term Bitcoin Owners’ Average Purchase Price Stands at $24,481, Meaning They’ve Typically Made Approximately a 400% Profit on Their Investment.
According to CryptoMoon’s latest report, Bitcoin moving closer to $100,000 has resulted in a substantial number of long-term investors selling their holdings. Some financial experts suggest this trend may indicate an impending peak that could catch unsuspecting traders off guard when buying interest decreases.
In essence, it’s like playing Musical Chairs: have fun while it lasts, but remember to get ready once the music ends,” was the statement made by CryptoQuant contributor Maartuun on December 8th.
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2024-12-10 07:18