Bitcoin Enthusiasm Peaks At $100K, Yet Expert Eyes A $95K Dip
24 Janvier 2025 - 4:00PM
NEWSBTC
The consistent retail demand for Bitcoin at the $100,000 mark,
which indicates high investor confidence, has recently drawn
notice. However, because short-term holders are driving the present
accumulating trend, market watchers are warning of a possible fall
to $95,000. Related Reading: Bitcoin Realized Cap Hits $832 Billion
Milestone As $100K Inflows Begin To Slow Retail Investors
Accumulate At Record Pace Retail investors, which include smaller
holders termed as “Shrimps” and “Crabs,” have been enthusiastically
accumulating Bitcoin. In the last month, Glassnode reports that
these groups collectively added 25,600 BTC to their portfolios.
That’s nearly twice the amount of newly mined Bitcoin over the same
period, a sign of significant demand for the “digital gold” at its
price peaks. Demand from retail investors for #Bitcoin at prices
around $100K remains strong – The Shrimp-Crab cohort (up to 1 and
10 #BTC, respectively) absorbed 1.9x the newly mined Bitcoin supply
last month, a total of +25.6k $BTC: https://t.co/l0sjVN2Toi
pic.twitter.com/UdzcCWXAGo — glassnode (@glassnode) January 23,
2025 The purchasing activity of these smaller investors highlights
an even more general retail enthusiasm trend. Nonetheless, experts
must still exercise caution. Although this degree of accumulation
is remarkable, the dominance of short-term holders (STHs) in this
surge introduces an element of risk for market stability.
Short-Term Holders Pose A Risk Often selling off during slight
declines to guarantee gains, STHs are renowned for their fast
responses to market changes. Particularly in cases of unexpected
volatility for Bitcoin, this reflexive behavior could set off
higher selling pressure. Teddy, a market analyst, underlined that
the existence of STHs might have a major impact on temporary price
swings. While STHs (Short-Term Holders) have indeed absorbed a
significant portion of the newly mined Bitcoin supply, it’s crucial
to consider the behavioral tendencies of this group. STHs are
historically more susceptible to panic during minor market
fluctuations, often resulting in… pic.twitter.com/dasfRgjOFR —
Teddy (@TeddyVision) January 23, 2025 Historically, the markets are
also more sensitive to the downtrends with STH. Analysts feel that
along with this prevailing trend, at such levels, caution for
investors would be prudent. Glassnode: Narrow Bitcoin Range Another
anomaly which Glassnode picked out in the price action of Bitcoin
is an unusually tight range over the past 60 days. Such events have
been precedents for volatile times ahead. This coincides with
historical trends, which suggest that the market will experience
either a breakout or a breakdown soon. While the sustained $100,000
price level reflects optimism, the market’s narrow range adds an
air of unpredictability. Related Reading: TRUMP Token Tops XRP In
Trading Volume Despite Sharp Decline A Possible Pullback Soon?
Given all of these factors, some experts believe Bitcoin may be due
for a slight price adjustment in the near future. Some experts,
like market veteran Michaël van de Poppe, predict a retreat to
$95,000, primarily due to STHs selling in the face of market
uncertainty. For the time being, retail demand remains a solid
source of support at $100,000. Investors should, however, brace
themselves for volatility and keep an eye out for market
indicators. As Bitcoin trades near its peak, the interaction of
retail euphoria and market risks will determine its next moves. At
the time of writing, Bitcoin was trading at $105,141, up 3.2% and
3.2% in the daily and weekly timeframes. Featured image from
Vecteezy, chart from TradingView
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