Bitcoin experienced a significant upswing at the end of 2023 and the beginning of 2024, but the rest of January has not been as impressive. Investors accustomed to prices over $40,000 are surprised by the ongoing decline, although the current price was once considered a challenging target. The question arises: what’s next for cryptocurrency?
Material Indicators analyzed the market order books, noting Bitcoin’s price stabilization between $41,500 and $44,000 since Saturday. They observed over $10 million in BTC bids above $42,000, with resistance strengthening above $43,500.
Seller interest is intensifying around the $45,000 region, indicating current weakness, which is not unexpected considering the billions in sales that have already worn down the bulls.
Philip Swift, the founder of Look Into Bitcoin, highlighted the Value Days Destroyed (VDD) metric in his analysis, signaling a local peak and confirming warnings of an overheated market as investor profitability exceeds 95%.
Chiliz (CHZ) has made significant gains over three days, breaking resistance. However, following a peak near $0.112, it began a support confirmation process due to negative market sentiment. If Bitcoin’s downturn continues, CHZ might retract to $0.085 or even $0.072. Conversely, if it maintains the $0.092 level, it could potentially rise to $0.13 or $0.142. Bitcoin’s immediate outlook includes a potential drop to $38,000 if the $41,500 support is lost. Yet, this correction could end sooner if GBTC sales weaken, ETF volumes increase, and optimistic developments occur.