Bitcoin is trying to make gains once again after dipping to the $39,000 mark yesterday. The popular crypto faces resistance at $40,500 with the current price action seen as a retest of major support. At the time of writing this article, Bitcoin has been up by 1.39% in the last 24-hours. It is trading at $40,167 as per data from CoinMarketCap.
Glassnode’s recent weekly report highlights that there has been a modest volume of profit-taking by investors. This was after Bitcoin made a break out from a multi-month consolidation range. The on-chain market intelligence firm said the market has seen around 13,300 BTC in profits realized each day since mid-February. The value isn’t historically extreme but it does appear to be providing sufficient headwinds to prices.
Glassnode observed that Bitcoin’s recent recovery has been relatively subdued with the market waiting for some major catalyst to bring fresh momentum and new inflows. It said recovery suggests that BTC is a HODLer dominated market. Moreover, Glassnode pointed out that investor spending behavior is switching from dominance of loss realization, to a modest amount of profit-taking 58% of transaction volume is currently realizing a profit.
Bitcoin’s slight gains haven’t got investors excited. The world’s most popular cryptocurrency has been down for two consecutive days. Analysts highlighted that Bitcoin slipped below $40,000 for the first time since mid-March. Some investors regard Bitcoin as a hedge against inflation but as of late, its price movements have been increasingly correlated with US stocks. Edward Moya, a senior analyst for Oanda, said many crypto investors in 2021 bought Bitcoin for between $30,000 – $40,000 range. This could suggest they may want to buy this dip that is if they still believe in the long-term outlook.
Overall, the crypto market is looking surprisingly calm, given the price plunge yesterday.