Bitcoin’s price has partially recovered from its brief dip below $41,000 on January 3. Despite this, risks of a new correction remain due to a possible wave of unrealized profit taking, reports The Block with a link to the CryptoQuant report.
The growth of the first cryptocurrency has resumed amid the ongoing wait for SEC approval of spot Bitcoin ETFs in the United States. Another positive factor is information from the Fed minutes, according to which the regulator is considering the possibility of a gradual reduction in the rate in 2024.
Over the past 24 hours, the price of Bitcoin has increased by 3.4%, according to CoinGecko. The asset is trading around $44,120.
However, unrealized gains for short-term investors remain high, according to a fresh report from CryptoQuant.
“This historically preceded price corrections as traders took profits,” experts noted.
Bitcoin’s supply percentage is in the green at 87.59%, close to a 12-month high.
Data: The BlockGlassnode.
Experts also pointed to the dominance of sales in the perpetual futures markets. According to their observations, the taker buy/sell volume ratio has fallen below 1, which is a bearish signal.
Analysts also noted an increase in the reserves of centralized crypto exchanges by 28,000 BTC, which is fraught with potential selling pressure.
Previously, CryptoQuant experts allowed for a “news selling” scenario after the approval of a spot Bitcoin ETF, according to which Bitcoin could fall to $32,000.
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2024-01-04 17:51:54
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