- Bitcoin price made a comeback above $40,000 on Thursday, eyeing gains after the recent correction.
- Bitcoin’s long term holders sent over $430 million in Bitcoin to exchanges as BTC dipped below $39,000.
- Santiment experts believe that it is the ideal time to take a contrarian position in Bitcoin, as volatility prevails in cryptocurrencies.
Bitcoin price suffered a setback after hitting its two year high of $48,989 on January 11. The asset dropped to its 2024 low of $38,555 on Tuesday before beginning its recovery to the psychologically important level of $40,000.
The approval of Bitcoin Spot ETFs by the Securities and Exchange Commission (SEC), ushered a volatility in crypto prices, and divided traders on their sentiment on BTC.
Santiment experts recommend taking a contrarian stance to benefit from the shifting Bitcoin price trend.
Daily Digest Market Movers: Bitcoin traders divided on their sentiment on Bitcoin price
- On-chain intelligence tracker Santiment identified that the sentiment among Bitcoin traders on Telegram, Reddit, X and 4Chan is divided.
- BTC traders on Telegram and X became excessively bearish before Bitcoin price dip, on Reddit and 4Chan it was the opposite.
Bitcoin sentiment among BTC traders. Source: Santiment
- Glassnode data reveals that Bitcoin’s current price action mirrors prior bull runs, between 2015 and 2018, 2018 and 2022. BTC price climbed from its market bottom and based on data from the chart below, the next market peak could arrive in October 2025.
Bitcoin price performance since cycle low. Source: Glassnode
- Bitcoin’s long term holders sent over $430 million worth of BTC at a loss to exchanges on January 22 on the day when BTC declined below $39,000. Glassnode data shows that BTC is going through capitulation and a breakout in the asset is closer.
Bitcoin Transfer Volume from Long-term holders. Source: Glassnode
Technical Analysis: Bitcoin price eyes recovery
Bitcoin made a comeback above the $40,000 mark on Thursday. BTC price has faced volatility since the ETF approval by the SEC. In the two weeks following the approval, Bitcoin price has declined, and traded sideways below the psychologically important $40,000 mark.
Bitcoin price is likely to make a comeback to $41,466, a key resistance level for BTC, as seen in the chart below.
BTC/USDT 1-day chart
In the event of further decline in Bitcoin, the asset could find support between $38,197 and $39,026, a zone where 549,410 addresses scooped up 266,390 BTC.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Pepe bears eyes for double-digit correction
Pepe (PEPE) continues to decline and trades below $0.000015 at the time of writing on Tuesday after correcting more than 22% since Saturday. The technical outlook suggests further correction ahead as momentum indicators show signs of weakness.
Bitcoin fails to sustain the $109K mark after Trump’s inauguration
Bitcoin price holds above the $100K mark on Tuesday after reaching a new all-time high of $109,588 the previous day. Santiment’s data shows that BTC prices quickly corrected, as social media showed major greed and FOMO after Trump’s inauguration.
Three reasons why AAVE could rally in upcoming days
Aave (AAVE) price hovers around $340 on Tuesday after rallying 9% the previous day. On Monday, the Ethereum Foundation allocated 50,000 ETH worth $165 million starting first with Aave, marking an endorsement of the protocol.
Ripple's XRP jumps 5% as Trump taps pro-crypto Mark Uyeda as acting SEC Chair
Ripple is up 5% on Monday after US President Donald Trump announced pro-crypto Mark Uyeda as the new acting SEC Chair. The announcement follows increased buying activity across XRP spot market and investment products.
Bitcoin: BTC rallies above $102,000 ahead of Trump’s inauguration
BTC's price continues to trade in the green, trading above $102,000 at the time of writing on Friday after rallying more than 7% this week. Recent US macroeconomic data released this week supported the rise of risky assets like BTC.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.