© Reuters. Bitcoin price expectations following its rise to the level of $40,125 and the unveiling of Tesla’s possession of digital assets worth $184 million and exceeding the consequences of GBTC.
Bitcoin-BTC price expectations continue to attract the attention of traders in the crypto sector, as the value of the currency witnessed a modest increase of 0.30% to trade around $40,125; This rise was accompanied by some important developments in the crypto arena, as the latest financial report of Tesla (NASDAQ:) revealed the extent of its large investment in the BTC currency, as the total value of its digital assets – in its announced budget – reached $184 million, which reflects… The company’s strong interest in the sector.
In addition, market analysts at JPMorgan (NYSE:) point to a decline in selling pressure on Bitcoin, and the intensity of profit-taking related to the developments of the Grayscale Bitcoin Fund (GBTC) appears to be declining, but… Opinions appear to be mixed about the impact of this development on the market.
Fitzgerald Cantor expressed his concern about the profitability of Bitcoin miners in the future, especially in the wake of the expected Bitcoin halving event, which may represent a challenge to the continued survival of 11 entities working in the field of mining by achieving an operating profit, so that these various factors come together and form the current and future dynamics of Bitcoin value. .
Tesla’s ongoing investment in Bitcoin: $184 million worth of investments in digital assets
Elon Musk’s Tesla company still maintains its holdings of Bitcoin, as the budget report for the last quarter of 2023 showed that the company still holds $184 million worth of digital assets, amid Musk continuing to feel… We are confident that Tesla’s market value exceeds that of other companies.
This revelation comes after Musk said that he and his space company, SpaceX, own a large amount of BTC currencies.
It should be noted that during the second quarter of 2022, Tesla sold 75% of the Bitcoin it had purchased for $1.5 billion during the first quarter of 2021. Musk stated – at the time – that he intended to own more BTC currencies in the future.
A picture of Tesla’s unaudited financial report for the fourth quarter of 2023 – Source: Tesla This report indicates that major companies are still interested in investing in Bitcoin, and this may have an impact on the general mood of market traders and make dealing using the most prominent virtual currency more reliable.
Grayscale’s GBTC stability eases pressure on Bitcoin selling pressure – according to JPMorgan
According to JPMorgan, the situation now indicates that Bitcoin is under less selling pressure after investors took their profits following the stability and calm situation that prevailed in the developments of the Grayscale Bitcoin Fund (GBTC). As a result of these developments, the value of Bitcoin declined by 20% following the launch of Bitcoin Spot ETFs.
The bank stated that part of this correction is due to investors who bought GBTC shares at a discounted price and rushed to reap their profits. Accordingly, JPMorgan expects that the losses resulting from GBTC developments will amount to $3 billion, which indicates that we may have overcome most of its negative consequences on the price of Bitcoin. Adding that most of the profit-taking operations have already taken place, which may limit the selling pressure that BTC has been experiencing recently.
Post-Halving Challenges: 11 Bitcoin Mining Entities May Suffer Profitability Consequences, According to Fitzgerald Cantor
Cantor Fitzgerald expects that miners – including major mining companies such as Marathon Digital, Riot Platforms, and Core Scientific – will experience difficulties in achieving operating profits after the upcoming Bitcoin halving event, and 11 of the largest mining entities may face difficulty in achieving operating profits if they do not… The price of BTC rises significantly after the awaited Bitcoin halving event.
Miners with high operational costs, such as Argo Blockchain and Hunt 8 Mining, are the most affected, according to the report. According to Cantor Fitzgerald’s research, and assuming the average price of BTC is $40,000, it is expected that a very limited number of mining companies – such as Bitdeer and CleanSpark – will achieve profits after the Bitcoin halving event expected to occur next April, when the rewards for mining blocks will be reduced. Bitcoin transactions halved.
Given the potential impacts on Bitcoin supply and demand dynamics, investors and traders may become more cautious, and market volatility may increase as a result of this event, as traders evaluate mining sector developments and how they impact Bitcoin pricing.
Bitcoin price forecast
Bitcoin (BTC) price is currently oscillating around the $40,277 level, and the coin is showing a cautious upward trend on the 4-hour chart. Resistance levels are located at $41,095, $42,072, and $43,394, respectively, while the price exceeding each of them constitutes a potential turning point that can give the upward trend strong momentum.
On the other hand, the support levels stabilize at $39,458, $38,618, and $38,000, respectively, which work to provide support for the price if the selling waves continue.
Pair price chart – Source: TradingView Looking at the technical indicators, the Relative Strength Index (RSI) reading is currently at 53, which means a neutral situation, while the 50-day Exponential Moving Average (EMA-50) is hovering around 40,169. $ In conjunction with the focal point; It is observed that an extended descending channel pattern has formed, limited by a major resistance level at $40,275.
BTC price’s failure to breach this resistance level and stabilize above it could push the price to take a downward path later. Currently, indicators of the general mood of traders indicate negative expectations below the level of $40,275, which means that traders should be cautious and cautious amid the stability of the price of BTC within these critical technical levels.
2024-01-26 14:27:00
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