Bitcoin Bears Paused at $41,700, BTC Price Likely to Start Recovery Soon
The price of Bitcoin fell to $41,707 and the price of BTC again surpassed $42,500 on Monday.
The increase in Bitcoin supply on exchanges caused the BTC Fear and Greed Index to change to neutral. Bitcoin whales engaged in profit-taking when the price of BTC fell from $46,900 to $41,700, according to data from Sentiment.
The price of Bitcoin (BTC) fell to its support zone on Monday as market participants turned their attention to Ethereum and altcoins. The BTC Spot ETF approvals by the Securities and Exchange Commission (SEC) turned out to be a “selling the news” event, and Bitcoin suffered a 15% drop in its price.
At the current price, 79.33% of BTC wallet addresses are profitable, on-chain data shows. Crypto analysts have said that accumulation of the asset by BTC issuers could catalyze a rally in the cryptocurrency as it drives demand.
Luke Broyles, a cryptocurrency expert at X, said that at the current rate, BlackRock could end up owning more Bitcoin than MicroStrategy by February 1. Broyles argued that this could change if current prices slow down or the price of Bitcoin increases.
Bitcoin demand from ETF issuers could catalyze a recovery in BTC price as the asset's bearish trend appears to have reached the $41,700 support.
BTC is currently in a support zone ($41,417 to $43,345) where 2.93 million addresses acquired 991,100 BTC, according to data from IntoTheBlock. The next upside target is the $43,345 level.
Factors that likely contributed to Bitcoin's recent decline include its increasing supply on exchanges and profit-taking by whales.
BTC supply on exchanges rose from a six-month low of 5.30% on January 7 to 5.39% on Monday.
