Bitcoin Price Maintains $40,000 Level, Correction Completed?

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The price of Bitcoin (BTC) is hovering around $40,000. On-chain data and technical indicators suggest early signs of a price recovery.

Grayscale GBTC Selling Pressure Declining

Bitcoin's price has fallen approximately -20% since the launch of the Bitcoin spot ETF in the United States on January 11, 2024. The lowest point for BTC's price after the ETF approval was around $38,500 on January 23, 2024.

Since the Bitcoin ETF became a "sell the news" event, traders have lacked momentum to overcome selling pressure. This price decline is partly due to a significant outflow from the Grayscale Bitcoin Trust (GBTC), indicating that investors may be opting for other Bitcoin ETFs with lower fees.

As of January 24, 2024, there has been a observed decrease in fund outflows from GBTC for two consecutive days, indicating reduced selling pressure from investors.


Bloomberg ETF analyst Eric Balchunas notes that "while outflows from GBTC show a declining trend and outflows from other ETFs slow down with a net flow of $824 million,"
Therefore, the decreasing outflows from GBTC on a daily basis may potentially lead to BTC finding a recovery turning point and experiencing a price increase.

On-chain Data and Technical Indicators Show Signs of Bitcoin Price Recovery

Amid the ongoing market correction, Glassnode data reveals interesting activity among Bitcoin whales. Investors are actively accumulating more BTC despite the recent market volatility.

Entities holding 1,000 BTC or more increased from 1,481 wallets on January 11, 2024, when the ETF began trading, to 1,533 on January 25, 2024, representing an increase of approximately +3%.

Source : glassnode

The accumulation behavior of Bitcoin whales could signal that investors expect BTC's price to surpass this year's peak of $49,000.

From a technical analysis perspective, the Relative Strength Index (RSI) for Bitcoin is moving upward, away from the oversold territory. This indicates that the price correction may be coming to an end.


Bitcoin is expected to maintain the $40,000 price level and should move above the EMA50 indicator to enhance recovery chances.
Short-term bullish momentum may push the BTC price up to $42,500 based on Fibonacci Retracement.

Read Too: Tesla Maintains Bitcoin (BTC) Holdings in Q4 2023

*Disclaimer:

This content aims to enrich reader information. Always conduct independent research and use disposable income before investing. All buying, selling, and crypto asset investment activities are the reader's responsibility.