Bitcoin has made a significant rebound, briefly surpassing the $52,000 mark for the first time since December 3rd, 2021.
However, seasoned investors remain cautious as excessive jubilation often precedes market corrections, especially when social media chatter turns to discussions about reaching new all-time highs.
đđŽ #Bitcoin has resumed its climb, briefly exceeding a $52K market value for the first time since December 3rd, 2021. As we have seen throughout this tremendous #bullcycle, excessive celebrations from the crowd after specific thresholds being crossed is often
(Cont) đ pic.twitter.com/LOWGu1LE65
— Santiment (@santimentfeed) February 14, 2024
According to data from Coinglass, BTC contract holdings on US dollar-denominated exchanges have climbed to $22.84 billion, reminiscent of levels seen during the previous bull market peak.Â
The amount of #Bitcoin held in known #crypto exchange wallets has dropped to its lowest level in six years, now totaling just 2.34 million $BTC!
This significant decrease suggests a growing trend of investors moving their #BTC off exchanges, potentially indicating a shift toward⌠pic.twitter.com/Y9zhRCOaWP
— Ali (@ali_charts) February 14, 2024
Notably, on November 9, 2021, open interest hit a high of $23.055 billion. Concurrently, the number of BTC held in cryptocurrency exchange wallets has dwindled to just 2.34 million, marking the lowest quantity in six years.
This decline hints at a potential trend towards long-term holding as investors withdraw their BTC from exchanges.
The #Bitcoin price has been on the rise for the past 7 days and finally broke the $52K mark again after 2 years!
However, there are two impending big threats to the short-term $BTC price. Can it overcome?
1. #Genesis was approved to sell 35M Grayscale Bitcoin Trust shares⌠pic.twitter.com/Qn7wbQXaDa
— Spot On Chain (@spotonchain) February 15, 2024
Bitcoin Faces Looming Threats Despite Recent Price Surge
Despite the positive momentum, Bitcoin faces looming threats in the short term. Firstly, Genesis was granted approval to sell 35 million Grayscale Bitcoin Trust shares ($GBTC), valued at $1.3 billion, on February 15, 2024.
Similar large-scale sales, like one by FTX in January, have historically led to price drops, emphasizing the potential impact of such transactions on BTC’s value.
Secondly, the US Government’s announcement to sell 2,875 BTC (approximately $150.6 million) seized from Silk Road on January 25, 2024, adds to the apprehension.
With a holding of around 208,000 BTC ($10.9 billion), the US Government’s previous sell-off in July allegedly contributed to a price decline, highlighting the influence of governmental actions on BTC’s price dynamics.
Adding to the cautious sentiment, analyst Ali Martinez’s insights on X reveal a TD Sequential sell signal on Bitcoin’s daily chart, suggesting a potential correction lasting one to four daily candlesticks.Â
â ď¸ Warning! The TD Sequential presents a sell signal on #Bitcoin daily chart, anticipating a one to four daily candlesticks correction. Note that the buy and sell signals this indicator has shows since December 2023 have all been validated. pic.twitter.com/XQoP8TLvye
— Ali (@ali_charts) February 15, 2024
Notably, signals from this indicator since December 2023 have consistently signaled valid market movements. As Bitcoin navigates through bullish territory, investors remain vigilant, mindful of potential market shifts and the influence of external factors on BTC’s price trajectory.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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