Key Insights
- Bitcoin price is hovering in a narrow range.
- BTC price is not falling after a strong rally, indicating stability and strength.
Bitcoin (BTC) price has undergone a correction phase after a strong bullish rally. Amid this bull run, BTC price has faced rejection twice from the $107K level. In the last week of December, the price dived below the 20-day EMA and displayed weakness.
Proposals for Bitcoin reserves are being considered by several U.S. states, which could increase demand for purchases by $23 billion. The adoption of Bitcoin reserves at the state level eliminates the possibility of pension fund purchases. That can play a significant role in the institutional acceptance of Bitcoin.
The North Carolina government is enthusiastic about digital assets in general and Bitcoin-related products in particular. Furthermore, by enabling quicker transactions and lower fees, the Lightning Network development has made Bitcoin a well-liked currency.
Can BTC Price Repeat History?
When writing, Bitcoin was trading at $97,450.00. It has remained unchanged over the past 24 hours. This crypto giant’s market capitalization was $1.93T, and its 24-hour trading volume was around $30.66B.
Based on the technical chart, the BTC price has been stuck in a narrow range on a daily time frame. However, the price stays between the 20-day and a strong support level of $92K. Any type of price momentum could be responsible for the further trend.
On a weekly time frame, Bitcoin price has been bullish since 2023. The technical chart suggests that it can receive buying pressure after a correction phase.
Since March to September, Bitcoin price has remained in the strong correction phase. At the beginning of October, the price erupted from the correction phase and witnessed a bullish rally.
After this rally, the price has again entered a correction phase. However, it is in the middle of correction and might remain there for some more time.
Once BTC comes out of this correction phase, it might trigger a strong bullish rally. According to the chart structure, it is likely to repeat history if investors remain bullish for BTC.
Conversely, if BTC buyers lose control amid the correction phase, selling pressure could be triggered. Once the price dives below the 20-day EMA, most traders and investors might prefer to book profit.
Short-term BTC Selling Decreases as New Investors Joined
At a time when price declines were caused by rising inflation, the actions of short-term Bitcoin holders halted selling pressure. Bitcoin owners spent a maximum of 5.5K BTC in February when the value was negative, according to Glassnode analytics.
A decrease in sudden selling activity is indicated by the current level of 3.8K BTC. It is near to annual typical levels of 3.5K BTC.
Additionally, short-term traders have maintained their positions rather than making snap decisions. The decrease in market sell-offs suggests that investors have a more positive outlook on Bitcoin. It could lead to Bitcoin’s next price shift.
Furthermore, because of Bitcoin’s stability, market analysts are currently interested in tracking future BTC price movements.
Macroeconomic events and shifts in liquidity influence price movements. However, market participants are still being cautious because they wish to observe how Bitcoin responds to shifting market conditions.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
