Bitcoin‘s price has experienced a rapid bearish shift over the past two days following a potential false surge surpassing $100K earlier this week. The primary coin dipped by approximately 5% in the last 24 hours, trading around $95,900 on Wednesday, January 8, during the mid-London session. This volatility in the crypto market over the past day has led to a liquidation of over $711 million, with most losses incurred by long traders.
If Bitcoin’s price drops below the significant support level of $97K to $99K, it may lead to a more substantial mid-term adjustment. From a technical perspective, Bitcoin appears to be developing a possible reversal pattern, which includes a head and shoulders (H&S) configuration, along with a bearish divergence in the Relative Strength Index (RSI).
Due to recent trends, it’s predicted that the value of Bitcoin could fall towards the current support level near $92,000. Notably, the price of Bitcoin has ended the last two days below its 50-day Moving Average, indicating that the sellers might be taking over.
If the resistance at approximately $92,000 doesn’t manage to keep Bitcoin prices stable over the next few days, CZ’s forecast that Bitcoin could drop from $100,000 to around $85,000 might come true.
Bitcoin Whales Relentless Accumulation
Regardless of a pessimistic Bitcoin forecast, data from on-chain transactions suggests that large-scale Bitcoin investors have persistently increased their Bitcoin holdings. Given the central banks’ acknowledgement of Bitcoin’s unique qualities, there’s growing interest among gold investors to move their assets into Bitcoin-related products as a means to protect against inflation and the devaluation of fiat currencies globally.
Over the last day, roughly 11,783 Bitcoins have left centralized exchanges, reducing the total amount to approximately 2.19 million. This is the lowest it’s been in several years.
Over the recent days, the primary issuers of U.S. Bitcoin ETFs, headed by BlackRock, have been consistently buying. On Tuesday, BlackRock’s IBIT took the lead among U.S. spot BTC ETF issuers with a net cash inflow of $596 million being poured in.
On Tuesday, despite significant payments going out to other ETF providers, Bitcoin’s investment product experienced approximately $52 million in net incoming cash.
A Silver Lining
In simpler terms, the prolonged rise in cryptocurrency prices that started about two years ago might persist for a while following Donald Trump’s inauguration as President in just over two weeks. While his inauguration later this month could lead to a temporary sell-off due to market speculation, the favorable crypto regulations he is expected to implement will likely have a strong, long-term bullish effect.
Currently, several countries, spearheaded by the Czech Republic, are engaging in discussions about using Bitcoin as a means to protect their economies from inflation. This comes in response to the anticipated establishment of a strategic Bitcoin reserve by the United States.
According to Coinspeaker’s analysis, it’s predicted that the price of Bitcoin will surge past $110K in the near future due to increasing demand from large-scale investors. Technically speaking, Bitcoin’s prolonged bullish trend may not reach its maximum until the monthly Relative Strength Index (RSI) reaches approximately 90%.
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2025-01-08 13:21