After facing some strong selling pressure earlier this, the world’s largest cryptocurrency Bitcoin (BTC) witnessed a mild bounce back on Friday, January 19.
Bitcoin Sees Bullish Divergence on RSI
In a recent update, on-chain data provider Santiment brings encouraging news to traders amidst challenging market conditions. Bitcoin, facing the prospect of dropping below the $40,000 mark, has swiftly rebounded, reclaiming the $42,000 threshold with an impressive +3.2% surge within the last three hours.
Courtesy: Santiment
The turnaround comes as Santiment highlights the emergence of bullish signals on key metrics such as the Relative Strength Index (RSI) and the 30-day Market Value to Realized Value (MVRV). Just as concerns were mounting among traders, these positive indicators suggest a potential shift in market sentiment and a renewed sense of optimism for Bitcoin.
However, the BTC price couldn’t sustain above $42,000 for more time on Friday as profit-taking remains intact.
According to data from Glassnode, a prominent blockchain analytics firm, a substantial influx of older coins re-entering liquid circulation has triggered the most significant profit-taking event since the all-time high (ATH) in November 2021.
The peak of Realized Profit for this current cycle occurred on January 4th, marking a noteworthy milestone. On this day, a staggering amount of over $1.3 billion per day in profit was realized as cryptocurrencies changed hands at elevated cost bases. The observation suggests a substantial movement of long-held coins, contributing to a notable shift in the profit landscape within the crypto market.
Courtesy: Glassnode
BTC Whale Activity on the Rise
In a significant development, crypto analyst Ali Martinez highlights a notable uptick in Bitcoin whales today. The number of addresses holding over 1,000 BTC has surged to its highest level since August 2022, reaching a total of 1,510.
This increase in the count of large Bitcoin holders raises intriguing possibilities, suggesting potential indicators of strong market confidence or strategic positioning among major players in the cryptocurrency landscape.
Today marks a notable uptick in #Bitcoin whales! The number of addresses holding over 1,000 $BTC has reached its highest since August 2022, now totaling 1,510.
This increase in large #BTC holders could signal strong confidence or strategic positioning in the market. pic.twitter.com/IooigIa9d0
— Ali (@ali_charts) January 19, 2024
However, there’s enough possibility that the Bitcoin price can further drop to $34,000 before resuming the next bull run.
