2024

Bitcoin

The post <a href="https://coinpedia.org/price-analysis/bitcoin-holds-near-40k-following-increased-accumulation-around-dip-whats-next-for-btc-price/" rel="noopener noreferrer nofollow">Bitcoin Holds Near $40K Following Increased Accumulation Around Dip! What’s Next For BTC Price?</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a>
The week began with Bitcoin’s price taking a bearish turn, causing panic among traders as it dipped below $40K, briefly touching lows near $38,500. This decline has raised critical questions about the market’s future direction. Traders now wonder if this signifies a decline in anticipation for the 2024 bull run or if it’s another chance to accumulate at more attractive prices. Despite the setback, Bitcoin has <a href="https://coinpedia.org/price-analysis/bitcoin-reclaims-40000-could-rise-beyond-41000-this-may-kickstart-the-breakdown-process-soon/" rel="noopener noreferrer nofollow">reclaimed the $40K mark</a>, driven by rising accumulation, offering hope for renewed buying demand.
<h2 class="wp-block-heading" id="h-bitcoin-s-netflow-becomes-negative">Bitcoin’s Netflow Becomes Negative</h2>
The recent decline in Bitcoin’s value can be traced back to a significant rise in GBTC outflows to Coinbase Prime, triggered by Grayscale. However, amidst this downturn, other ETF providers have capitalized on the opportunity to acquire substantial quantities of Bitcoin, a strategic move that many analysts are applauding as astute.&nbsp;&nbsp;
Over the last 24 hours, the Bitcoin market witnessed a collective liquidation totaling around $45 million. This figure comprises roughly $10.8 million from buyers’ long positions and over $34.3 million from sellers’ short positions. This trend shows a robust battle between buyers and sellers within the $38K to $40K price range.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/kKDFQ1iHcF1i0z1wjEXRziO3HLGBvnfXaktiVUVN4So49kaMnzN_lbsD_EOFBtEaiB1eMm8FXH0q7Us6e4N_qnG2O-osoE_TbaxT-L-51IW-ch8KHVbtRfWu2e3RgKwJcYhDdRoWqyKj-UtrPzXD1zWLEa3xVqrdQx2GRH9zg1dL9cNvTvhLf4_kmfDVEw" alt="">
</figure>
As per insights provided by IntoTheBlock, Bitcoin’s Netflow remains in the negative zone, implying that investors are actively accumulating BTC during this dip. Currently, the Netflow registers at -1.91K BTC, indicating that the outflow of Bitcoin surpasses the inflow.
Should this trend of negative Netflow continue, it could potentially decrease selling pressure on exchanges. With a reduced supply of Bitcoins available for selling, the supply-demand trend might hint at a price surge, particularly if demand remains steady or rises. This scenario could increase the chances of a robust recovery for BTC price.&nbsp;&nbsp;
<h2 class="wp-block-heading" id="h-what-s-next-for-btc-price">What’s Next For BTC Price?</h2>
Recently, Bitcoin has seen significant volatility as it rebounded from the low of $38,500 and surged toward $40K. The price was effectively defended near the low due to robust accumulation. Despite this, sellers remain active near resistance levels. Currently, Bitcoin’s price trades at $40,005, showing an increase of over 2.6% from yesterday’s figure.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/VKFlZfolgcD8AtdF7DLODp5xrG4ZCaNUqxgRhIYL4x4DQf5c_IREXsMj1CS7X24eCGYLYw4qR80ZVnFkux2C4RPDbZ-Uu3KGTxBqHPhBU93KblqjRTnCLonUFPokMOpFwhZWXWAOjHw_X4Y9yZGjS5DTIE5CcW0n6Rz-0L-NyGB850ODXmMReBUhvcqW3w" alt="">
</figure>
Buyers are now attempting to push Bitcoin’s value above the EMA20 trend line, although sellers are resisting at higher prices. A push above $40K, followed by momentum around $43K, could enhance buyer confidence, sparking new interest. This could potentially send Bitcoin’s price to the $46K-$47K mark.
Conversely, if support is established at $38K, there could be an immediate move towards a decrease to $36,400. Nonetheless, this level may also draw considerable buying interest.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/vBkg480OfoTvX6dFZDWpNbKr0gILL-WOBFiWtaW094SzsqBbDp3KZnu6b7EILIG2_NBeOFRKu3NL1CzxfZEO80unPSg-LzffAQ-fwYBQ19UuvlnJEDZE_Vbkt0F9BDreiL4CcufXwDJ530DeUIZlaQW78Y2V0AdYgAcBZTXCPvxJpHJxQVX8JDxoGVltsQ" alt="">
</figure>
Presently, the ratio of long to short positions is undergoing a substantial surge, standing at a current value of 1.3821, signifying a bullish sentiment. This data implies that approximately 42% of positions are in the short category, anticipating a downward movement in the price of BTC. In contrast, 58% of positions belong to the long category, expressing confidence in a price increase.

Bitcoin Holds Near $40K Following Increased Accumulation Around Dip! What’s Next For BTC Price?

Table of Contents

CoinPedia News

Other articles published on Jan 24, 2024

ORDI Dropped 15% After Bitcoin Plunged Below $40k

Kaspa (KAS) Token Faces Deep Correction, Analyst Shares Key Support Levels to Watch

Flare onboards Google Cloud as infrastructure provider

Cryptocurrency Market Struggles Amidst Sell-Off; Some Altcoins Outperform

HashKey to launch three indexes tracking digital assets

Swiss Regulator Approves First Retail Tokenized Securities Trading Platform

Join our free newsletter for daily crypto updates!