Bitcoin’s Wild Ride: Will It Soar Again or Just Take a Nap?

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  • Even with Bitcoin taking a little tumble, both long-term and short-term holders are as chipper as a squirrel in a nut factory.
  • Looking at the bigger picture, it seems the price might just leap like a frog on a hot rock, thanks to a dwindling supply of that shiny BTC.

Well, well, well! After reaching a dizzying height of $109,114.8 on the 20th of January—just a hair’s breadth before Mr. Trump took the stage—Bitcoin [BTC] has decided to take a little dip, down 2.42% to $101,308.55, as per the good folks at CoinMarketCap. Ain’t that a kick in the pants?

According to the wise folks over at AMBCrypto, this little decline is just a retracement, like a dog chasing its tail, as the asset gets ready for another gallop, given the prevailing market sentiment. Hold onto your hats, folks!

BTC’s price momentum, sustained

Now, according to the number crunchers at Glassnode, Bitcoin’s Long-Term Holder Net Unrealized Profit/Loss (LTH-NUPL) has crossed the 0.75 threshold—a number that historically screams “Euphoria/Greed” like a rooster at dawn.

This LTH-NUPL measures the unrealized profits or losses for those lucky ducks holding BTC for at least 155 days. A rise in unrealized profit usually means traders are itching to sell their assets to lock in those sweet gains, hinting that the market might have hit a local top. Who knew trading could be so much like fishing?

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But lo and behold, despite the dip, the market sentiment is as sunny as a summer day, with short-term holders pushing prices up like a kid on a seesaw.

At the time of this writing, the Short-Term Holder Market Value to Realized Value (STH-MVRV) ratio was sitting pretty at 1.16, surpassing the 1-year trendline of 1.1. STHs are those sprightly addresses holding BTC for less than 155 days, bless their hearts.

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All in all, this bullish sentiment among both long- and short-term holders shows the potential for further growth in BTC’s price as buying activity intensifies across the market. It’s like watching a pot of water come to a boil—just a matter of time!

New high reached

The derivatives market is buzzing with bullish sentiment for BTC, with the Funding Rate hitting a new monthly high of 0.0350%—the highest it’s been since the 5th of December 2024. Talk about a party!

A high Funding Rate means that long traders are paying short traders to keep their positions, all while dreaming of a price rally. It’s like a game of poker, but with more zeros and less bluffing.

With a high Funding Rate, it seems BTC’s price is likely to trend higher, as market participants are all singing from the same hymn sheet.

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Hyblock Capital’s liquidation heatmap shows BTC is at a critical juncture, eyeing two key liquidity levels: $106,000 on the upside and $99,200 on the downside. These levels are like magnets, drawing BTC toward them, and who doesn’t love a good magnet?

Given the current market sentiment, BTC might just take a little dip to the $99,200 level before bouncing back to $106,000, possibly setting new records in the process. It’s like a rollercoaster ride, folks—hold on tight!

BTC market outlook remains positive

The overall outlook for the BTC market remains as bright as a new penny. Research from CryptoQuant revealed that over the past three years, exchanges have seen a massive outflow of 1 million BTC. That’s a whole lot of digital gold!

Such outflows indicate a reduced supply of BTC available for trading, leading to a demand squeeze and decreased selling pressure. If these outflows keep on keeping on—indicating more BTC is being moved off exchanges—it could send BTC to higher price levels, just like a hot air balloon rising into the sky.

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2025-01-21 16:08