Bitcoin: Here’s what could stop BTC’s rally into 2024
- Bitcoin’s supply in profit hit 89%, requiring caution from investors.
- The price of Bitcoin was 5.59% higher than the average price at which all coins were bought.
Bitcoin [BTC] climbed above $44,000 just ahead of Christmas, giving its holders and crypto enthusiasts much to cheer.
How things change!
As of this writing, the king coin was trading 161% higher than it was at the same time last year, when sentiment around cryptos was at an all-time low.
The stunning turnaround has rekindled hopes of a better future ahead for the coin in particular and the market in general.
The best part was that the appetite for Bitcoin remained strong. According to AMBCrypto’s analysis of Hyblock Capital’s data, a sentiment of greed prevailed in the market, spurring hopes of more accumulation in the new year.
However, amid the bullishness, an unsettling signal drew the attention of analysts, threatening to apply brakes on Bitcoin’s meteoric rise.
Will weak hands profit-take?
Bitcoin’s supply in profit hit 89%, a level deemed “cautious” by popular on-chain research firm Santiment.
In other terms, the likelihood of investors booking profits increased substantially, possibly resulting in a short-term downward pressure on BTC.
Santiment stated that a ratio in the range of 40-70% was more desirable. However, the current levels merit more prudence from investors leading into the new year.
To get a better understanding of the situation, AMBCrypto scrutinized Santiment’s popualar MVRV Ratio indicator.
At press time, the price of Bitcoin was 5.59% higher than the average price at which all coins were bought. Compared to the previous spikes of 16% and 15% during the ongoing rally, this appeared to be a safe level.
Read BTC’s Price Prediction 2023-24
Meanwhile, few market experts continued to place their weight behind the world’s largest cryptocurrency. In a statement shared with AMBCrypto, Shivam Thakral, CEO of Indian cryptocurrency exchange BuyUcoin, noted,
“The crucial meeting between Blackrock, Nasdaq, and SEC regarding Bitcoin ETF sent strong positive signals leading to positive market sentiment. As we enter the last week of 2023, the crypto market is gathering more steam to sustain the momentum into 2024.”