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Bitcoin Price At Risk? Grayscale’s $335M Coinbase Transfer Stirs $30,000 Plunge Potential

The Bitcoin price has experienced a notable shift as selling pressure mounts, with BTC bears gaining the upper hand. Asset manager Grayscale, the owner and manager of the Grayscale Bitcoin Trust (GBTC), is a significant contributor to this trend. 

Since the trading of spot Bitcoin exchange-traded funds (ETFs) began on January 12, Grayscale has been on a selling spree, as evidenced by substantial transfers of BTC to the United States-based crypto exchange Coinbase.

Bitcoin Price Under Pressure As Grayscale Selling Spree Continues

According to Akrham Intelligence data, in addition to the previously reported 69,994 BTC ($2.9 billion) transfers, Grayscale sent an additional 8,593,075 BTC (approximately $335.19 million) to the exchange on Tuesday, suggesting the possibility of further selling activities.

Bitcoin price

These developments have affected the Bitcoin price, which has experienced a significant downtrend, declining by 20% over the past week and a half. 

On Tuesday, the largest cryptocurrency dropped as low as $38,500, placing considerable pressure on a crucial support level. Despite the bearish pressure, the $38,500 support level has demonstrated resilience so far, with the cryptocurrency rebounding to $39,300 at the time of writing. 

Nevertheless, the duration of Grayscale’s selling spree remains uncertain, and if market sentiment continues to turn negative, Bitcoin could potentially revisit the $30,000 mark. This figure is just above the key $29,000 level that marked the beginning of the bull run that took Bitcoin to its 22-month high of $49,000 on January 11th.

Bears On The Rise

If the $38,500 threshold succumbs to Grayscale’s selling pressure and profit-taking, market observers should closely monitor the $37,750 level as the next resistance. 

Failure to hold above this level would open the door to a potential decline toward the major resistance at $35,600, which could further prevent a dip to the next support level at $33,000.

However, if these support levels are breached and the Bitcoin price continues its downtrend, the next significant key levels to watch for bullish momentum would be $29,000 to $30,000. A breakdown below these levels could signal an end to the current bull market structure and grant the bears the upper hand in the mid-term, at least until the anticipated halving event in April. 

Historically, halving events have acted as major catalysts for the Bitcoin price, and their influence has been demonstrated.

As the Bitcoin market faces intensified selling pressure and Grayscale’s ongoing selling spree, market participants remain cautious about the potential for a significant price plunge. The coming days and weeks will be critical in determining whether Bitcoin can regain its bullish momentum or if it will succumb to further downward pressure.

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com

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Expert Analysis: Six Factors Suggest Bitcoin Price Won’t Drop Below $37,800

In the past month, the Bitcoin price has experienced a significant decline after reaching a 22-month high of $49,000. Currently, the largest cryptocurrency has fallen below the crucial $40,000 mark, raising concerns about the prospects of the ongoing bull run and the overall bullish market structure. 

However, there are indications that the bottom of the current downtrend may be near, potentially setting the stage for a potential price reversal.

Bitcoin Price To Avoid Plummeting To Low $30,000s

Market analyst Marco Johanning sheds light on the situation, offering insights into the Bitcoin price movement. Johanning suggests that it won’t be long until Bitcoin reclaims the $41,500 level or potentially rises from a lower level if a specific scenario unfolds. 

According to Johanning, Bitcoin will finally encounter significant liquidity on the downside. Notably, the price has touched around below $39,000 multiple times, indicating the presence of substantial liquidity at these lows. 

Moreover, Johanning addresses the skepticism surrounding the price of around $37,800, arguing against widespread expectations of a drop into the low $30,000 range. 

Johanning emphasizes that the primary liquidity lies below $40,000 and is not in the low $30,000 range. Traders profited from the low $30,000 range have likely adjusted their stop orders to protect their gains, creating a layer of support below the recent equal lows. 

As the price starts hitting these stop orders, automatic selling occurs, further down the price until it encounters significant buy pressure. The analyst points out a daily order block at $37,700 and high timeframe (HTF) support at $38,5000, indicating the potential for notable buy pressure in these price regions. 

Johanning also highlights the likelihood of filling Chicago Mercantile Exchange (CME) gaps and Imbalances, with the next imbalance anticipated below $33,000.

Short Squeeze Rally Imminent? 

According to Johanning, the prevailing sentiment reveals many bears waiting to short a market dump. Johanning predicts that a short squeeze could occur once the price reverses, leading to a rapid price increase.

In terms of Fibonacci retracement levels, Johanning suggests that since the Bitcoin price has already lost the $40,200 level, it could potentially fall to the 0.5% Fibonacci level, which coincides with those above the $37,800 level. 

Johanning speculates that the price may briefly touch $37,800 before closing above the HTF support level of $38,500, setting the stage for a potential upward movement.

The recent downtrend in Bitcoin’s price has raised concerns about continuing the bull run. However, market analyst Marco Johanning presents several key arguments supporting the possibility of a price reversal. 

Bitcoin price

With Bitcoin’s current price at $38,900, there is a possibility of increased buying pressure in this region. The support wall at $38,5000 has demonstrated resilience thus far, and its performance will be closely observed. 

If the support wall fails to hold, the market will observe how the $37,800 price level performs and whether it aligns with the analyst’s thesis.

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Long Positions Surge On Bitfinex: Whales Add 4,230 BTC, Signaling Potential Price Reversal

In a surprising turn of events, the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) has not yielded the anticipated immediate upside impact on the Bitcoin price. 

Contrary to expectations within the crypto community, BTC has experienced a sharp drop of over 16% since the ETF approval on Wednesday, January 11, dipping below the key $40,000 level. The failure of BTC bulls to hold the support level has led to a testing phase at the $38,000 level, accompanied by a 4.5% price drop within the past 24 hours.

Bitfinex Whales Buck The Trend

Amidst the market volatility, according to Datamish, Bitfinex whales have accumulated Bitcoin long positions since November 2023. This accumulation of approximately 4,230 BTC since January 17 marks the first sustained increase in Bitfinex BTC long positions following a sharp decline in November last year. 

Bitcoin

However, the recent downturn in the BTC price can be partly attributed to increased selling pressure from miners and asset manager Grayscale. Grayscale has notably increased its BTC sell-off since the ETF trading commenced. 

Transferring a significant amount of BTC from the Grayscale Trust address to Coinbase, totaling 69,994 BTC ($2.9 billion), has influenced the market dynamics. 

Additionally, reports indicate substantial sell-offs of Grayscale’s Bitcoin Trust GBTC shares, including a notable sale of 22 million GBTC shares by the FTX estate, worth nearly $1 billion. 

Bitcoin Liquidation Zones Wiped Off

The impact of Grayscale’s sell-off is evident in CoinGlass’ liquidation heatmap, which shows notable liquidation zones being wiped off in the 1-week chart. 

While Grayscale’s BTC dump has contributed to the price drop, the increased accumulation of BTC long positions on Bitfinex indicates a potential change in sentiment. A price reversal could occur if the $38,000 support line holds, pushing BTC back above $40,000.

Bitcoin

Furthermore, excluding Grayscale, institutional investors and asset managers involved in the ETF market have collectively acquired over 86,320 BTC at an average price of $42,000, representing a substantial $3.63 billion investment. 

Market experts such as Ali Martinez suggest that these institutions are likely to adopt a strategic, long-term view rather than engage in peak purchases. This level of institutional investment underscores the growing recognition of Bitcoin as a legitimate asset class and signifies confidence in its long-term growth potential.

Bitcoin

Currently, the Bitcoin price is at $38,800, reflecting a substantial year-to-date decline of over 12% and a 9.7% drop in the past seven days. The duration and extent of the selling pressure caused by Grayscale’s BTC dump remain uncertain, leaving the question of how much further the BTC price may decline.

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Expected To Mirror Historical Trends: Glassnode Sets $120K Price Prediction For 2024

Bitcoin (BTC), the largest cryptocurrency in the market, has encountered a significant downturn following the waning hype around exchange-traded funds (ETFs), resulting in a 9% decline over the past fourteen days. 

However, Glassnode co-founders remain optimistic, asserting that the recent price corrections align with historical patterns and could propel Bitcoin to new heights, nearly doubling its current all-time high (ATH) of $69,000.

Healthy Market Correction?

In their latest analysis, the co-founders of the blockchain analytics firm posted on X (formerly Twitter), highlighting Bitcoin’s movement to the 6.618 Fibonacci Extension after a Bull Flag Correction. 

They draw parallels between the current correction and similar market conditions observed in late 2017 and 2020. The question arises: Will history repeat itself in 2024, and will Bitcoin reach its 6.618 Fibonacci Extension during this bullish market, setting a target of approximately $120K?

Bitcoin

Examining the chart above, the analysis by the Glassnode co-founders reveals a comparable price correction following Bitcoin’s breakout above the $10,000 price level, which initiated the bull trend that propelled the cryptocurrency to a $15,000 increase before reaching its current ATH of $69,000.

Likewise, Bitcoin exhibited a similar bull flag pattern after surpassing the $29,000 price level, leading to a 22-month high of $48,900 on January 11. Notably, this surge occurred shortly after the approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC).

Considering these developments, the key to Bitcoin’s future trajectory lies in maintaining support around the $40,000 level and further consolidation above it. If these conditions are met in the coming months, Bitcoin has the potential to reach the 6.618 Fibonacci extension, pushing its price as high as $120,000.

New All-Time Highs Expected For Bitcoin

Like Glassnode co-founder’s recent price analysis, crypto analyst Crypto Con also relies on historical patterns to gauge the future price action of BTC. According to Crypto Con, the mid-top of this Bitcoin price cycle occurred slightly faster than previous cycles but slower than the third cycle. 

Notably, this mid-top represents the only instance where it occurred outside of an early top, as indicated by the purple and yellow dots on the chart provided by the analyst.

Bitcoin

Despite the 2019 mid-top occurring a year earlier than expected, the cycle top still manifested within the usual timeframe, plus or minus 21 days from November 28th, 2021. 

Crypto Con stresses that there is currently no evidence apart from complex theories to support the notion of an accelerated cycle. The analyst cautions against assuming that ETFs prevent potential Bitcoin price corrections. 

After November 28th, 2024, Crypto Con predicts the emergence of new all-time highs for the Bitcoin price of $90,000 or $130,000 and significant growth for the cryptocurrency market. 

Bitcoin

At the time of writing, BTC is trading at $40,590, down 2.5% in the past 24 hours. If this level is breached, Bitcoin could drop towards the $37,650 level as it is the next major support for the cryptocurrency.

Featured image from Shutterstock, chart from TradingView.com

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Mt. Gox Repayment Rumors Cause Bitcoin Price To Drop To $42,000, Market In Turmoil

Mt. Gox, the infamous Bitcoin exchange that suffered a major hack over a decade ago, has allegedly finally begun the process of repaying its customers for the 850,000 lost Bitcoin. This news has sent shockwaves through the market, causing a momentary disruption in the Bitcoin price uptrend.

As a result of these developments, the current price of Bitcoin stands at $42,625, with a 24-hour trading volume of $22,655,498,534.64. 

However, the market has witnessed a -2.40% decline in the past 24 hours, reflecting the uncertainty caused by the Mt. Gox repayment proceedings.

Bitcoin Price Plunges Amidst Mounting Speculation

Reports from participants in the mtgoxinsolvency subreddit group indicate that some individuals have already received payouts in yen via PayPal. 

However, those who opted for cash deposits into their bank accounts have not reported any inflows as of yet. Several users have shared notifications they received, alerting them to a system error that resulted in double payments. 

These users are now allegedly being requested to return the excess funds to the Rehabilitation Trustee promptly.

Moreover, the Rehabilitation Trustee has reached out to affected individuals to refund the mistakenly transferred amount, which was the second transfer, as the first transfer was the official repayment. 

Bitcoin price

Users have been instructed to use PayPal’s “Refund” feature to return the funds to the Rehabilitation Trustee’s account. Alternatively, they can transfer an equivalent amount of money to the Rehabilitation Trustee’s PayPal account if the “Refund” feature is unavailable.

While some users have confirmed receiving their repayments, there is uncertainty surrounding the timing of Bitcoin reimbursements or if they are taking effect.

No Bitcoin Outflows Detected From Mt. Gox?

In a recent statement by CryptoQuant co-founder and CEO, Ki Young Ju, it has been confirmed that “no Bitcoin outflows have been recorded from the Mt. Gox Trustee wallet at this time.” 

Furthermore, the trustee responsible for managing the rehabilitation proceedings of Mt. Gox, the now-defunct Bitcoin exchange, has yet to provide any official statements explaining the absence of outflows from the wallet. 

Consequently, the cryptocurrency community finds itself on edge, eagerly awaiting updates regarding the timing and method of Bitcoin reimbursements.

Once again, the cryptocurrency community has been hit by another bout of misinformation surrounding the long-awaited Mt. Gox exchange repayment to its customers. 

The spread of this news has had a notable impact on market sentiment and has stirred volatility in the Bitcoin price. The future timeline and potential effects of the exchange’s repayment, slated for 2024, remain uncertain.

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com  

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Bitcoin Price Surges On Positive News: FASB’s Fair Value Recognition Reignites $42,000 Support Recovery

The Bitcoin price experienced a notable downturn as selling pressure intensified, resulting in a decline of over 4% from its annual peak of $44,500. This downturn was further exacerbated by the loss of the crucial $42,000 support level. 

However, the largest cryptocurrency in the market received a substantial uplift from the US Financial Accounting Standards Board (FASB), which has spurred a rapid 1.8% surge in BTC’s value within the past two hours. As a result, Bitcoin has successfully recovered the $42,000 support level.

FASB’s Fair Value Recognition Brings Clarity To BTC?

In a significant development for the cryptocurrency industry, the FASB has announced new accounting rules that require companies, including prominent entities like MicroStrategy, Tesla, and Block, to measure their cryptocurrency holdings at fair value. 

These rules, set to go into effect in 2025, allow businesses to capture the real-time highs and lows of their Bitcoin and Ethereum (ETH) assets, providing a more accurate representation of their holdings.

Under the previous accounting practices, companies were only allowed to record the lows, resulting in a one-sided accounting treatment that often led to reduced valuations and diminished earnings for businesses holding cryptocurrencies. The highly volatile nature of crypto values further exacerbated the issue.

The FASB’s new rules address these concerns by mandating the recording of cryptocurrencies at fair value, a measurement technique aimed at reflecting the most up-to-date value of these assets. 

Changes in fair value will now be recorded in net income, allowing companies to account for fluctuations in the value of their crypto holdings more comprehensively.

The positive news for BTC lies in the fact that the new FASB rules provide greater transparency and accuracy in assessing the true value of cryptocurrency assets. By capturing fluctuations in fair value, companies will have a more realistic representation of their holdings, enabling better decision-making and financial reporting.

Bitcoin, being the most widely recognized and valuable cryptocurrency, stands to benefit significantly from these changes. The recognition of its fair value allows companies to showcase the true worth of their BTC holdings, potentially boosting investor confidence and attracting further institutional interest.

Turbulent Times Ahead For Bitcoin Price

Following these recent developments, the Bitcoin price has successfully rebounded to previously lost levels, demonstrating heightened volatility after a brief consolidation phase just below $42,000.

However, according to CoinGlass’ liquidation heatmap, Bitcoin’s price may be facing further volatility that could lead to a significant amount of liquidation of both long and short positions. 

Bitcoin price

The liquidation heatmap from CoinGlass highlights substantial indications of liquidation leverage exceeding $200 million both above and below the current Bitcoin price. 

Of particular concern is the thick liquidation leverage below $41,000, as seen in the chart above, which, combined with the prevailing trend, could become a probable target for the Bitcoin price in the coming days.

Conversely, following BTC’s correction, additional liquidation leverage has emerged in CoinGlass’s heatmap, particularly in the $42,000 and $43,000 range of short positions. This added selling pressure has contributed to the retracement of the Bitcoin price.

This potential scenario suggests a potential price swing up and down before a stable continuation of either the downward or upward momentum. The outcome remains uncertain as to which side will give way first and what prevailing trend will shape the latter part of the year.

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin $42,000 Support Under Pressure As Short Position Inflows Soar

Bitcoin (BTC) recently experienced a sharp decline, tumbling towards $40,000 amid a broader sell-off across the cryptocurrency market. While the most significant token managed to recover some losses, currently trading 4% lower at $42,000, concerns persist regarding the potential for further downside price action before a potential recovery.

Investors Show Caution With Short-BTC Position Inflows

According to a recent CoinShares report, digital asset investment products witnessed their 11th consecutive week of inflows, totaling $43 million. Notably, there was a significant increase in short position inflows due to recent price appreciation and perceived downside risks. 

Europe led with $43 million in inflows, followed by the US with $14 million (with half in short positions). On the other hand, Hong Kong and Brazil experienced outflows of $8 million and $4.6 million, respectively. 

Bitcoin remained the primary focus for investors, attracting $20 million in inflows, bringing the year-to-date inflows to $1.7 billion. Short-Bitcoin positions saw $8.6 million in inflows, suggesting some investors view the current price rises as unsustainable. 

Ethereum (ETH) also saw increased interest, with its sixth week of inflows totaling $10 million, marking a turnaround from previous outflows.

Selling Pressure Mounts As Miners Decrease Bitcoin Holdings

According to Satoshi Club, there are indications that miners are selling their Bitcoin holdings following the recent price drop. Data shows a significant decrease in miners’ BTC holdings, with increasing flows to exchanges, suggesting selling pressure in the market. 

Satoshi Club’s analysis highlights that this trend could be attributed to the anticipated halving in 2024, which will reduce miners’ rewards by half. 

Bitcoin

Additionally, Bitcoin’s net unrealized profit/loss, which indicates the investor profit ratio, has surpassed 0.5 for the first time since December 2021. This suggests that a significant portion of Bitcoin investments are currently profitable, potentially leading to increased selling pressure at current price highs.

BTC’s Bullish Structure Intact, But Deep Correction Threatens Run

In the 1-day chart for Bitcoin, the current trading price is closely aligned with a support level. Despite briefly dipping below this level, Bitcoin has managed to recover and trade above it, mitigating further declines.

However, in the event of continued selling pressure and an inability to maintain its current price level, Bitcoin’s next critical level of support would be $39,990. 

Bitcoin

It is worth noting that during the previous hype surrounding Bitcoin’s milestone, many traders entered long positions below the current levels. This influx of long positions could trigger a liquidation hunt before a recovery ensues.

If such a scenario unfolds, the hunt for liquidations could drive Bitcoin’s price further down, potentially testing support levels at $38,700 and $37,800.

On a positive note, Bitcoin’s current bullish structure would remain intact unless a significant correction occurs, pushing the price below the $29,900 level. This level began Bitcoin’s current bull run in late October.

The future outcome hinges on whether Bitcoin can successfully hold its nearest support levels and facilitate a recovery that shifts the focus from hunting long positions to hunting short sellers, eventually regaining previously conquered territories.

Featured image from Shutterstock, chart from TradingView.com

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SEC’s “Crypto Asset Securities” Alert Boosts Spot Bitcoin ETF Prospects – Here’s Why

As anticipation builds for the long-awaited approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC), an encouraging sign has emerged, further increasing the likelihood of approval. 

The SEC issued an investor alert regarding “crypto asset securities,” prompting speculation that the spot Bitcoin ETF may be closer than ever. 

Spot Bitcoin ETF Approval On The Horizon?

The recent investor alert issued by the SEC has garnered significant attention in the cryptocurrency community. While the alert does not explicitly mention the spot Bitcoin ETF, many market participants believe it is a positive indicator for its potential approval.

The parallel between the investor alert and the approval of Bitcoin Futures adds to the growing optimism surrounding the spot Bitcoin ETF. Before approving Bitcoin Futures, the SEC issued similar alerts and warnings, indicating their concern and engagement with the underlying asset class. 

Consequently, market observers, including Bloomberg’s ETF expert Erich Balchunas, are interpreting the investor alert on “crypto asset securities” as a potential precursor to the approval of a spot Bitcoin ETF. Balchunas stated: 

Oh snap, SEC tweeting out educational materials, warnings on crypto investing, which is something they also did ahead of $BITO

It is important to note that the SEC will evaluate various factors, including investor protection, market integrity, and compliance with existing regulations, before making a final determination on the spot Bitcoin ETF. 

However, given the increased attention and progress in cryptocurrency, the issuance of the investor alert signifies a step in the right direction.

Potential BTC Surge To $48,000 

Renowned crypto analyst, Crypto Con, has made interesting observations regarding BTC’s current market dynamics that shed light on the potential next steps for the largest cryptocurrency on the market.

According to Crypto Con, money has been pouring into BTC at a rate not witnessed since the last cycle’s peak, with historical data indicating similar patterns on only five prior occasions. 

This influx of funds has heightened the market’s sentiment and created anticipation for potential further price gains. Crypto Con highlights the significance of Bitcoin’s Money Flow Index (MFI), a technical indicator used to measure the strength and volume of funds flowing into or out of an asset, which reached a value of 91.57, historically indicating the presence of additional bullish momentum.

Bitcoin ETF

Furthermore, the analyst identifies the .618 cycle retrace of weekly candle bodies as a point of interest for potential target ranges. This level aligns with other significant price regions, further bolstering its importance. 

Crypto Con suggests that Bitcoin’s price could likely reach the range of $47,000-$48,000 based on these target ranges. However, the analyst also notes that significant price increases are often followed by retracements at this stage in the market cycle.

Crypto Con highlights the potential for a retracement after the completion of the current price rise. The analyst identifies the $31,000-$32,000 range as an area of interest for a potential retracement based on long-term data. 

Bitcoin ETF

As of the time of writing, Bitcoin (BTC) is being traded at $43,800, showcasing a noteworthy recovery within the past 24 hours following a retracement below $42,900 on Thursday. 

While this price rebound is encouraging, it remains uncertain whether the prevailing market dynamics possess sufficient strength to propel Bitcoin beyond its current yearly high of $44,500. There is a possibility that Bitcoin may experience another failed attempt to surpass this level, which could subsequently result in a deeper retracement before witnessing another upward movement.

Featured image from Shutterstock, chart from TradingView.com 

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Sam Altman-Backed Crypto Startup Looks To Secure $100 Million For Bitcoin Private Credit Fund

Meanwhile Advisors, a crypto startup backed by the American entrepreneur Sam Altman, has announced plans to raise $100 million for a Bitcoin (BTC) private credit fund. 

The fund, known as Meanwhile Private Credit Fund aims to provide institutional investors with access to BTC while targeting an additional 5% yield denominated in the cryptocurrency.

Bitcoin Rally Sparks Launch Of Meanwhile Advisors Fund

According to a report by The Block, Meanwhile Advisors has launched the fund as Bitcoin continues its recent rally, with prices currently falling from the $44,000 level down to the $43,200 mark. 

Zac Townsend, the co-founder and CEO of Meanwhile Group, stated that the belief is that Bitcoin will appreciate significantly in the future, and the fund offers investors a unique opportunity to increase their exposure to digital assets.

The Meanwhile BTC Private Credit Fund adopts a single-close, closed-end structure. Participating limited partners (LPs) will contribute US dollars to the fund, which will be immediately converted to Bitcoin following the single close. 

Meanwhile will lend this BTC to borrowers to generate the targeted 5% return in Bitcoin. This structure allows LPs to accumulate more Bitcoin if its price appreciates during the fund’s lifecycle without requiring additional principal investment.

Townsend mentioned that the minimum investment amount per LP is $250,000, with no maximum limit. The fund’s investment period spans three years, followed by a four-year harvest period, resulting in a total term of seven years. 

However, capital is returned to investors during harvest, meaning a significant portion of the invested capital may be returned well before the seven-year mark.

Innovative Fee Approach? 

Per the report, the Meanwhile BTC Private Credit Fund charges a 2% management fee and a 20% carried interest fee, both in Bitcoin. The carried interest fee only applies when the LP’s Bitcoin holdings are increased. 

This fee structure ensures that if Bitcoin experiences substantial price appreciation, Meanwhile does not benefit from the price appreciation itself but rather from generating more Bitcoin for the LPs.

Addressing concerns about risk management, Townsend highlighted that the closed structure of the fund eliminates the risk of a “bank run” scenario that can lead to insolvency. Moreover, the fund focuses on making conservative loans to “creditworthy institutional borrowers”, mitigating risks associated with lending to retail investors at higher rates.

The Block also reported that Anchorage Digital serves as the fund’s custodian. Meanwhile Group’s insurance unit has previously launched a Bitcoin-denominated life insurance policy, and Townsend mentioned plans to introduce an accidental death coverage policy in Bitcoin as well.

Bitcoin

When writing, the leading cryptocurrency in the market is trading at $43,200, marking a decrease of nearly 2% within the last 24 hours. This decline follows an unsuccessful attempt to solidify its position above the significant $44,000 milestone. 

Nevertheless, Bitcoin has managed to maintain a 14% increase over the past seven days and is currently holding strong at the support level of $43,000, as it sets its sights on achieving a new annual peak.

Featured image from iStock, chart from TradingView.com

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Warning Signals Flash As Bitcoin Surges: Expert Spotlights Potential $25,000 Liquidity Sweep

Bitcoin (BTC), the world’s leading cryptocurrency, has recently witnessed a surge in price, reaching a new yearly high of $42,100 on Monday. However, this significant price increase has raised concerns among market participants about the possibility of a potential correction and a subsequent liquidation sweep, which could drive the price down to as low as $25,000.

Second Capitulation And Liquidity Sweep For Bitcoin?

Justin Bennett, a prominent technical analysis expert, acknowledges the remarkable performance of Bitcoin, stating, “It’s been a hell of a run from BTC, and it may very well continue without a significant correction in the short term.” 

However, Bennett highlights that the previous two bear markets concluded with a second capitulation, suggesting the possibility of a similar scenario occurring this time. Bennet cautions against ruling out a liquidity sweep that could drive the price down to $25,000.

To provide further context, liquidity sweep refers to a sudden and drastic move in price that aims to clear out excess leverage and trigger liquidations of overleveraged positions. 

Such a move could lead to a cascading effect, causing the price to drop further as more positions get forcefully closed. The occurrence of a liquidity sweep at the $25,000 level would not only test the resilience of Bitcoin but also serve as a crucial moment for market sentiment.

Bitcoin

As seen in the 2-week chart above shared by Bennet, despite the potential correction in BTC, this could be the last difficulty that Bitcoin bulls experience before the continuation of the bull run; this will be further fueled by the potential approval of Bitcoin spot exchange-traded funds (ETFs) applications by the US Securities and Exchange Commission (SEC), which is expected to push prices even higher. 

A boost from the halving of Bitcoin will further add to the bullish momentum and sentiment in the market, which could push the price of BTC to new all-time highs (ATH).

Additionally, historical trends indicate a promising outlook for Bitcoin. Analyst Ali Martinez points out that in the past, strong BTC performance during October and November has been followed by a bullish December. According to Martinez, market participants can anticipate a bullish December ahead if this pattern holds. 

El Salvador’s BTC Investments Prove Profitable

El Salvador’s President Nayib Bukele recently announced that the nation’s investments in Bitcoin have yielded significant profits, refuting previous claims of losses made by critics. 

President Bukele revealed that if El Salvador were to sell its Bitcoin holdings at the current market price, the country would not only fully recover its initial investment but also make a profit of $3,620,277.13.

Bitcoin

Addressing the numerous articles and hit pieces that had ridiculed El Salvador’s Bitcoin investment strategy, President Bukele emphasized that these assessments were based on the cryptocurrency’s market price at the time of evaluation. With Bitcoin’s recent surge in value, the country’s investment has turned profitable.

While acknowledging that the price of Bitcoin will continue to fluctuate, President Bukele reaffirmed that El Salvador remains committed to its long-term strategy and has no intention of selling its Bitcoin holdings. President Bukele stated: 

Of course, we have no intention of selling; that has never been our objective. We are fully aware that the price will continue to fluctuate in the future, this doesn’t affect our long-term strategy.

Bitcoin

At the time of writing, BTC is trading at $41,200, reflecting a notable price increase of 3.8% over the past 24 hours and 12% over the past seven days.

Featured image from Shutterstock, chart from TradingView.com 

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MicroStrategy Boosts Bitcoin Holdings With $590 Million Purchase, Totaling 174,530 BTC

In a testament to its unwavering confidence in Bitcoin (BTC), MicroStrategy, one of the largest Bitcoin holding companies, has once again expanded its cryptocurrency portfolio. 

The company’s former CEO, Michael Saylor, announced the acquisition of an additional 16,130 BTC, valued at approximately $593 million. This strategic move comes as Bitcoin enters a phase of accumulation above the $37,000 mark.

MicroStrategy Adds To Bitcoin Stash

As announced, MicroStrategy’s latest purchase was made at an average price of $36,700 per Bitcoin. With this acquisition, the company’s total Bitcoin holdings now stand at an impressive 174,530 BTC. 

Throughout 2023 and previous years, MicroStrategy has consistently demonstrated its commitment to BTC, accumulating a substantial amount of the cryptocurrency. 

The total cost of MicroStrategy’s Bitcoin investments exceeds $5.20 billion, with an average purchase price of $30,252 per Bitcoin. This significant investment reflects the company’s long-term bullish outlook on Bitcoin’s potential as a store of value and hedge against inflation.

As reported by NewsBTC, the company has reaped substantial gains from the recent uptrend in the overall cryptocurrency market and Bitcoin’s impressive price surge. With BTC experiencing a 36% increase since October, Microstrategy has now amassed over $1 billion in unrealized profits.

Bitcoin

Notably, Bitcoin’s positive performance has directly impacted Microstrategy’s stock, traded under the ticker name MSTR. The stock has witnessed a significant surge in value, closely tied to the ongoing bullish momentum of BTC. 

On November 9, as Bitcoin reached its previous yearly high of $38,000, the price of MSTR stock also soared to an all-time high (ATH) of $533 per share. This milestone further proves Microstrategy’s successful investment strategy over the past three years.

Michael Saylor, a prominent advocate for Bitcoin, has been a vocal proponent of the cryptocurrency, emphasizing its superior qualities compared to traditional fiat currencies. 

MicroStrategy’s continued accumulation of Bitcoin reinforces Saylor’s conviction in its long-term prospects and serves as a testament to the company’s belief in the digital asset’s store-of-value properties.

Potential For Short-Term Pullback Looms

In a recent market update by the CryptoQuant author IT Tech, short-term insights on the Bitcoin derivatives market shed light on the current upward momentum and the potential for a minor pullback. 

According to the analysis, the ongoing upward momentum in the Bitcoin market heavily relies on perpetual movement. The rising price of Bitcoin has been a key driving force, contributing to the bullish sentiment. 

However, the Crypto Volatility Divergence (CVD) Spot indicator suggests a relatively flat movement in spot demand. This indicates that a significant increase in immediate spot demand may not support the current price surge.

In the absence of strong spot demand materializing in the market, IT Tech suggests a possible minor pullback in the near term. 

This potential pullback could be attributed to several factors, including profit-taking by traders or a lack of sustained buying pressure from spot investors.

Bitcoin

The analysis also highlights the possibility of Bitcoin liquidations in the short term, which could indicate further upward movement to liquidate late short positions. 

This suggests that additional buying pressure may be from those who have taken short positions on Bitcoin. As these shorts are liquidated, it could continue the upward trend.

Bitcoin

As of the latest update, Bitcoin (BTC) is trading at $37,600, showing a slight decrease of 0.5% over the past 24 hours. However, it has maintained a gain of 1.5% over the past seven days, indicating a period of consolidation for the cryptocurrency

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Bulls Buckle Up: Seasonal Trends Point To $50,000 Target

Bitcoin (BTC), the largest cryptocurrency on the market, has again failed to consolidate and reach the $38,000 level for the third time, as it is currently experiencing a 3% pullback. This has led the community to speculate that a significant retracement may occur before the bullish momentum resumes and the next uptrend begins. 

However, renowned crypto analyst Adrian Zduńczyk has recently shed light on Bitcoin’s potential next target of $50,000. Zduńczyk’s analysis considers several crucial factors, including the prevailing bullish market sentiment, the ongoing uptrend, the short-term outlook, miner sentiment, and seasonal trends. 

Evidence Of Dominant Bull Market

Zduńczyk notes that the cryptocurrency industry is in a bull market, with Bitcoin reaching a new 52-week high close and experiencing the third wave of the bullish cycle. The correlation between Bitcoin and the S&P 500 has risen, indicating a favorable environment for Bitcoin. High time frame trends are also rising.

Zduńczyk identifies key macro support levels for Bitcoin at $29,000 and $27,000, highlighting growing demand fueled by the anticipation of the approval of spot Bitcoin exchange-traded funds (ETFs) and the upcoming halving event expected in April 2024.

Notably, the daily chart for BTC remains in an uptrend, according to Zduńczyk. He points to a target of $40,000, supported by the appearance of a “golden cross” pattern.

Furthermore, Zduńczyk believes that the rising Simple Moving Average (SMA) 200 serves as “irrefutable evidence” of a dominant bull market since January. These indicators suggest a continuation of the upward trajectory for Bitcoin.

Zduńczyk also identifies key support levels at $35,000 to $35,800, emphasizing that a bullish sentiment prevails as long as Bitcoin remains above these levels. 

Zduńczyk Eyes Bitcoin November Target Of $50,000

Currently, Bitcoin is ranging between $35,500 and $38,000, Zduńczyk notes that the momentum bands are widening, indicating an increase in volatility. The rising 50-day Average True Range (ATR) trend supports this observation.

Fear & Greed Index stands at 69, indicating a mixed sentiment among market participants. Miners, on average, are enjoying a profit increase of 23%. Zduńczyk maintains a positive outlook based on these factors. 

Regarding seasonal trends, October demonstrated a gain of 27%, exceeding the average performance. Historically, November has been the best month for Bitcoin, which has an average gain of 43%, with a target of around $50,000. Notably, December typically adds 7% to November’s closing price.

Bitcoin

Currently, BTC is trading at $36,400, reflecting a 5% and 22% profit over the past fourteen and thirty days, respectively. The focus now shifts to whether BTC’s price can maintain its crucial support levels and sustain its bullish uptrend, potentially reaching the $50,000 milestone supported by historical patterns.

Featured image from Shutterstock, chart from TradingView.com 

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Time To Cash Out? Bitcoin’s 4-Hour RSI Triggers Sell Indicator

Bitcoin (BTC) has retraced to the $28,400 level following a failed breakout above $30,000, resulting in a high rate of liquidations for both long and short positions. 

Additionally, the recent fake news surrounding the approval of Blackrock’s spot Bitcoin Exchange-Traded Fund (ETF) by the US Securities and Exchange Commission has disrupted the upward trend and introduced new bearish indicators in the Bitcoin market.

RSI Screams Sell

Renowned trader and crypto analyst Ali Martinez suggests selling BTC based on its 4-hour chart Relative Strength Index (RSI) indicator. His simple trading strategy advises selling BTC when the RSI exceeds 74.21 and buying when the RSI dips below 30.35.

Bitcoin

As seen in the chart above, BTC’s RSI stands at the 74 level, which is notably high considering that on October 16, after the spread of the fake news on various platforms, including X (Formerly Twitter), the RSI reached as high as 82.83.

While this indicator may seem straightforward, it has proven effective on BTC’s 4-hour chart. For instance, on October 1st, Bitcoin peaked at $28,500, but after the RSI climbed above 80, the leading cryptocurrency swiftly dropped to $27,150 within hours.

Although the effectiveness of these indicators is not always guaranteed, the combination of the recent false pump, the ongoing retrace evident in all BTC charts, the lack of bullish momentum, and the prevailing market sentiment of fear, doubt, and uncertainty could create the perfect storm for BTC to retest lower support levels before potentially embarking on another upward movement.

Bitcoin Pre-Halving Retracements Sound Alarm Bells

To further support Ali Martinez’s bearish thesis, renowned crypto analyst Rekt Capital recently shed light on Bitcoin’s historical retracements approximately 180 days before halving events. 

According to Rekt, in 2015/2016, approximately 180 days before the halving, Bitcoin experienced a retracement of -25%. Similarly, in 2019, around the same timeframe before the halving, Bitcoin retraced by -38%. 

While Rekt Capital identifies as a macro bull, he acknowledges that historical data favors bearish trends before halving events. 

This observation raises the question of whether history will repeat itself in 2023. Will Bitcoin witness a significant retracement similar to previous cycles, or will the market dynamics 2023 deviate from historical patterns?

What is certain is that as the crypto community eagerly anticipates the 2023 halving, uncertainty looms regarding Bitcoin’s price behavior leading up to the event.

Bitcoin

As of the current market conditions, BTC is trading at $28,400, indicating a profitable position across all time frames. In the past 24 hours, Bitcoin has experienced a modest increase of 1%.

Over the seven, fourteen, and thirty-day periods, BTC has recorded profits of 3.7%, 4%, and 7%, respectively, despite the earlier bearish factors. The sustainability of Bitcoin’s current price level remains uncertain, as it remains to be seen whether it will withstand potential retracements soon.

Featured image from Shutterstock, chart from TradingView.com 

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30% Of Bitcoin Supply Enters Into Loss As Price Continues Decline

On-chain data reveals more than 30% of the Bitcoin supply has entered into losses as the price of the crypto continues to decline.

Less Than 70% Of Bitcoin Entities Are Now In Profit

As per the latest weekly report from Glassnode, the percentage of BTC entities in profit has severely dropped recently as the value now oscillates between 76% and 65%.

The “percent of entities in profit” is an indicator that measures the percentage of Bitcoin investors that are currently in profit.

The metric works by looking at each coin on the chain and checking its history to see the price it last moved at. If this price is less than the current one, then the coin has accumulated some profit. On the other hand, it being bought at a higher price would imply that it’s in loss at the moment.

An “entity” here refers to a collection of addresses that are controlled by the same investor(s). So based on whether the coins held by these entities are in profit or loss, it’s possible to talk about the profit status of the entity as a whole.

Related Reading | El Salvador Prepares Regulatory Framework To Issue Controversial Bitcoin Bonds

Now, here is a chart that shows the trend in the Bitcoin percent of entities in profit over the past three years:

Looks like the indicator’s value has sharply dropped recently | Source: The Glassnode Week Onchain – Week 8, 2022

As you can see in the above graph, the Bitcoin percentage of entities in profit has plunged down recently, and is currently below 70%. Conversely, this means that more than 30% of the entities are now in loss.

The report also notes that more than 10% of the entities bought their coins between $33k and $44k. So if the price doesn’t catch an uptrend soon, many of these will start going underwater, and some will thus also be forced to sell their coins.

Related Reading | Stifel says Three Macro Factors Could Drop Bitcoin Price To $10,000

This can lead to yet more selling pressure in the Bitcoin market, and would therefore be bearish for the crypto’s outcome.

BTC Price

Bitcoin’s price crashed below the $37k mark early today, but has since recovered a bit. At the time of writing, the crypto’s price floats around $37.4k, down 15% in the last seven days. Over the past month, the coin has gained 3% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC’s price seems to have sharply gone down over the last few days | Source: BTCUSD on TradingView

As uncertainties due to geopolitical tensions rise, investors have started exiting out of risk markets. This has resulted in a plunge in the price of Bitcoin.

Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com