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Bitcoin (BTC): The flagship cryptocurrency rebounds despite intense pressure!

Sun 28 Jan 2024 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed ▪ Trading

In recent days, bad news has accumulated for Bitcoin (BTC). The flagship cryptocurrency has shed feathers over the past few days. A bearish dynamic that has negatively impacted the wallets of smaller-scale BTC holders, with their total plummeting. BTC is clearly under pressure, which it has just managed to shake off.

Bitcoin (BTC)

Bitcoin (BTC) Rebound Despite Doubts Among Small Holders

Recently, Bitcoin’s (BTC) valuation has dipped below the $40,000 mark. This downward trend has broadly affected the crypto market and hasn’t spared small-scale BTC holders.

According to a study by crypto data provider Santiment, Bitcoin wallets of smaller sizes have seen a sharp decline. In just four days, over 487,000 wallets containing 1 BTC or less were liquidated.

Per Santiment, this rapid decrease in the total number of small BTC wallets marks the fastest drop, at least since the remarkable bull run Bitcoin (BTC) experienced in October 2023.

The crypto data provider explains that this trend reflects historical patterns often linked to investors’ disappointment. Such situations typically persist until small investors regain confidence in cryptocurrencies. And that could be soon, given BTC’s surprise rebound.

Bitcoin faces intense pressure with a massive drop in small wallets

Towards a New Rally for the Flagship Crypto?

Fundamentally, such a development signals a shift in sentiment among small investors. It’s one more reason for investors to closely monitor Bitcoin’s (BTC) price dynamics.

Analysts warn of a possible downward correction for the queen of cryptos. They estimate the price could fall by 15 to 20% from current levels. But it seems, market volatility has taken them by surprise once more.

While just a few hours ago, Bitcoin (BTC) was trading around $40,100, the crypto has breached the $40,000 resistance. It is currently valued at $41,880 after gaining 0.45% in valuation in the past hour for a daily increase of 5.47%. For the moment, the reasons for this upturn are to be assessed.

This could potentially be good news for the crypto community, concerned about the low dynamism of the flagship crypto. Especially since the approval of Bitcoin Spot ETFs, which were presented for months as a stimulator for the adoption of Bitcoin (BTC). Now, the question is no longer whether the asset will withstand market pressure. With its new surge, we’re wondering if it will maintain a bullish dynamic. To be continued…

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.