2023-12-27 16:30:38
Bitcoin faces the risk of a price correction during the New Year holiday due to selling pressure from short-term investors. About it The Block said Bitfinex Head of Derivatives Jag Kooner.
On December 20, the quotes of the first cryptocurrency tested the $44,000 mark. However, already on December 26, the rate fell below $42,000. At the time of writing, Bitcoin is trading at levels near $42,900.
BTC/USDT hourly chart of the Binance exchange. Data: TradingView.
“We expect a larger drawdown if short-term holders and retail leverage continue to dominate the market and cause a pullback amid lower liquidity over the holiday period,” the expert said.
According to him, a Bitcoin correction is possible even if the price rises above $44,000. This level is a profit-taking zone for medium-term investors, Kuner noted. This category includes market participants who purchased cryptocurrency in the last 18-24 months.
He added that short-term holders were one of the main factors behind the latest pullback in prices. Their closing of profitable positions in Bitcoin led to “overheating”.
Previously, CryptoQuant experts assumed the possibility of the price of the first cryptocurrency breaking through the $50,000 level at the beginning of 2025. The same forecast was given by Matrixport specialists.
Recall that Messari founder and CEO Ryan Selkis expressed confidence in the continuation of the digital gold rally in 2024. In his opinion, Bitcoin will surpass most assets in profitability.
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