Bitcoin (BTC) experienced a rapid recovery after facing strong selling pressure on January 19, bouncing back from $40,200 to $42,240 within minutes. This volatility was followed by significant metrics showing bullish signals.
On-chain data provider Santiment reported encouraging signs for investors despite Bitcoin’s risk of falling below the $40,000 mark. Bitcoin quickly surged by 3.2% within three hours, surpassing the $42,000 threshold, but it could not maintain its position above $42,000 and is currently trading around $41,500.
Key indicators such as the Relative Strength Index (RSI) and the 30-day Market Value to Realized Value (MVRV) ratio are signaling an uptrend. These positive metrics suggest a potential shift in market sentiment and renewed optimism for Bitcoin’s future.
According to leading blockchain analytics firm Glassnode, there is a significant influx of liquid, old BTCs re-entering circulation, triggering one of the most substantial profit-taking events since the all-time high in November 2021.
Experienced crypto analyst Ali Martinez has noted a notable increase in Bitcoin whale activity, with the number of wallet addresses holding over 1,000 BTC reaching 1,510, the highest since August 2022. This rise in large Bitcoin investors hints at strong market confidence or potential strategic purchases among major players in the crypto world.