Bitcoin holds around $40,000 due to cumulative gains around the dip! What’s next for BTC price?
The week began on a downward note for the price of Bitcoin, causing panic among traders as the price dipped below $40,000 and briefly touched lows near $38,500. This decline has raised important questions about the future direction of the market. Now traders are wondering whether this means expectations for a 2024 bull market have declined, or if it’s another opportunity to accumulate assets at more attractive prices. Despite this setback, Bitcoin regained the $40,000 mark thanks to cumulative gains, offering hope for renewed buying demand.
Bitcoin’s Netflow Becomes Negative
The recent decline in Bitcoin’s value stems from a significant increase in GBTC outflows to Coinbase Prime due to greyscale. However, even amid this economic downturn, other ETF providers have taken advantage of the opportunity to acquire significant amounts of Bitcoin, a move that many analysts are praising as a shrewd strategic move.
In the last 24 hours, there were mass liquidations totaling $45 million in the Bitcoin market. This figure consists of approximately $10.8 million in buyers’ long positions and more than $34.3 million in sellers’ short positions. This trend shows fierce competition between buyers and sellers within the $38,000 to $40,000 price range.
According to insights provided by IntoTheBlock, Bitcoin’s Netflow remains in negative territory, meaning investors are actively accumulating BTC during this downturn. Netflow is currently listed at -1.91K BTC, indicating that Bitcoin outflows have exceeded inflows.
If this negative Netflow trend continues, selling pressure on exchanges could potentially decrease. As the supply of Bitcoin available for sale decreases, supply and demand trends can suggest a price spike, especially if demand remains steady or increases. This scenario could increase the chances of a strong recovery in BTC price.
What’s next for BTC price?
Bitcoin has recently seen considerable volatility, rebounding from a low of $38,500 and surging to $40,000. Prices were effectively defended near the lows due to solid accumulation. Nonetheless, sellers remain active near the resistance level. Currently, the price of Bitcoin is trading at $40,005, showing an increase of more than 2.6% from yesterday.
While sellers are resisting higher prices, buyers are now attempting to push Bitcoin’s value above the EMA20 trendline. A move above $40,000 and continued momentum around $43,000 could increase buyer confidence and spark renewed interest. This could potentially send Bitcoin price towards the $46K-$47K mark.
Conversely, if support is set at $38,000, it could immediately drop to $36,400. Nonetheless, this level may attract significant buying interest.
Currently, the ratio between long and short positions has increased significantly and is currently showing an upward trend at the 1.3821 level. This data suggests that approximately 42% of positions are in the short category and are anticipating a downward movement in the BTC price. On the other hand, 58% of positions were in the buy category, expressing confidence in a price increase.