Topic: Analysts Point Out Reduced Profit-Taking Amid Bitcoin’s Resilience and Prospects for Growth
Insights:
Jan Happel and Yann Alleman, co-founders of Glassnode, a blockchain analysis company, observe a slowdown in profit-taking by Bitcoin investors. They outline two significant factors that could propel Bitcoin prices upwards in the foreseeable future.
Expert View:
In a recent report, Happel and Alleman, known as Negentropic on social media, highlight the net realized profit and loss metric as an indicator of investor sentiment, indicating a drop in profit-taking compared to levels seen in late 2022. They note, “Profit-taking is subsiding as BTC settles around $94,000-$95,000, reducing its magnetism for investors. To stimulate upward momentum, fresh liquidity and participation are crucial. The reopening of markets and adjustments in portfolios might spur activity soon – potentially before the upcoming inauguration day of the new U.S. President,” they elaborated.
Market Overview:
At present, Bitcoin is being transacted at $97,429, reflecting a 4.2% increase in the past 24 hours. Analysts emphasize that the imminent inauguration of crypto-friendly President-elect Donald Trump on January 20th could prompt investors to rebalance their portfolios, coupled with heightened market activity following the end of seasonal closures.
Furthermore, they draw attention to the current status of the cryptocurrency market, specifically the Bitcoin Dominance (BTC.D) rate, presently at 57.6%. This statistic has decreased from a recent peak near 61%, hinting that alternative coins may soon surpass Bitcoin in performance.
Impact Assessment:
The outlook for alternative coins to gain traction is strengthening, notably with Ethereum (ETH) displaying indications of forming a support base against Bitcoin. The ETH/BTC trading pair is presently positioned at 0.03565 BTC, equivalent to $3,475. The analysts suggest that this trend, in conjunction with diminishing Bitcoin dominance, might indicate a favorable climate for alternative coins. “Could a resurgence in alternative coins be on the horizon? ETH/BTC starts the week with robust momentum, while Bitcoin’s dominance struggles to maintain its bullish trajectory on the weekly chart,” they remarked.
Conclusion:
In conclusion, analysts affiliated with Glassnode point out the deceleration in Bitcoin profit-taking, potentially clearing the path for upward price movements, especially with major macroeconomic developments looming. As market conditions evolve, the weakening of Bitcoin’s dominance may offer promising prospects for alternative coins to excel. Investors are advised to stay alert and conduct comprehensive research before engaging in high-risk ventures in the cryptocurrency sector.
