Sunday, June 23, 2024

Bitcoin Price Analysis: $40k Potential, But Larger Correction Possible – Levels to Monitor.

Three trends are boosting bitcoin’s price, which is feeling optimistic. One, it’s historically liked the fourth quarter! Second, analysts are predicting that spot Bitcoin exchange-traded funds (ETFs) will be approved sometime between January 5 and January 10. Third, there’s still reason to anticipate the April 2024 Bitcoin halving event.

Bitcoin prices could reach $40,000

The price of bitcoin (BTC) is aiming for the psychological level of $40,000. Before a correction, it may just barely miss it. The Relative Strength Index (RSI), among other optimistic factors, supports this prediction. The RSI momentum indicator indicates that momentum is increasing, and its value at 68 indicates that there is still potential to rise before the cryptocurrency king is deemed overbought.

Additionally, the Awesome Oscillator (AO) indicates that the bulls are in control of the market because it is in the positive region and has green histogram bars. Hence, increased buying pressure may cause the price of bitcoin to rise from its present position of $39,462 (as of 8:00 AM GMT), through the high of the $39,778 range, and finally break through the psychological $40,000 barrier.

On-chain measures that back up the optimistic forecast for Bitcoin

The Global In/Out of the Money (GIOM) statistic of on-chain aggregator IntoTheBlock indicates that no supply constraint will keep the largest cryptocurrency by market capitalization from realizing its potential for growth. This on-chain indicator indicates that there is just one significant area of interest, which is occupied by many investors who had previously bought Bitcoin at this price range, between $38,670 and $39,701. In this case, there are about 860,540 addresses holding about 324,370 BTC coins.

The next significant obstacle is between $42,556 and $67,413, which is the range where investors or 5.64 million addresses bought 2.11 million BTC tokens at an average price of $52,282.

Additionally, according to the representation, 85.60% of Bitcoin holders are sitting on unrealized profits (in the money) at the current price, compared to just 12.74% who are sitting on unrealized losses (out of the money). In the meantime, just 1.66% of token owners (at the money) are breaking even.

Additionally, the exchange inflows indicator indicates a downward trend, indicating that while more token holders continue to hold onto unrealized profits, the overall intention among them to sell BTC is decreasing. It suggests a determination to ride the uptrend, which in turn creates a lot of purchasing pressure relative to seller momentum, driving up the price of Bitcoin.

However, if traders start taking profits and cashing in on their rapid gains, the price of Bitcoin may drop. Important levels to keep an eye on include $37,500, $35,000, $32,500, $31,529, and, in the worst-case scenario, the psychological threshold of $30,000. A 25% decrease from the existing levels would result from such a shift.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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