Bitcoin Price Analysis: Will It Reach $109,000 in February?
Bitcoin’s price remains under $100,000. Retail traders show fear, leading to a reduction in non-empty wallets. Larger investors are accumulating Bitcoin, potentially indicating future price increases. Imran Lakha projects that volatility may stabilize, contributing to a possible rally near all-time highs.
On Thursday, Bitcoin’s price fluctuates beneath the significant $100,000 mark, currently hovering around $96,000, which is nearly 15% shy of its record high of $109,588 from January 20. Recent data from on-chain analytics reveals that retail traders are becoming increasingly fearful, which could lead to their capitulation. Notably, the number of non-empty wallets has decreased to its lowest point since December, suggesting that small investors are liquidating their holdings out of caution.
In a broader context, the total count of non-empty wallets on Bitcoin’s blockchain has fallen, indicating a decline in retail confidence. The crypto intelligence platform Santiment reported a drop of over 277,240 non-empty wallets within a three-week span. This trend reflects fear among small holders regarding a potential market correction, while larger investors, or “whales,” appear to be capitalizing on this fear by accumulating Bitcoin, which historically leads to price increases during periods of heightened anxiety.
Imran Lakha of Options Insight suggests that Bitcoin might experience a resurgence as volatility normalizes post key events. He cited a rise in realized volatility metrics and projected that the situation could stabilize towards March’s options expiry. Even amidst short-term fluctuations, options data indicates potential for a bullish Bitcoin trend in the near future, encouraging hopeful predictions for price recovery.
From a technical perspective, Bitcoin shows potential support at about $93,572, correlating with the 50-day Exponential Moving Average (EMA). Resistance levels are noted around $103,278, just above the elusive $100,000 threshold. The Moving Average Convergence Divergence (MACD) suggests weakening negative momentum, providing a glimmer of hope to investors seeking bullish trends.
Bitcoin remains the leading cryptocurrency by market cap and facilitates transactions independently of centralized entities. The dynamics between Bitcoin and alternative cryptocurrencies, or altcoins, reflect shifting investor behaviors, where a drop in Bitcoin dominance suggests investors might seek higher returns by diversifying into altcoins. Despite the inherent risks associated with investing in cryptocurrencies, all market participants should conduct thorough research before making any decisions.
In summary, Bitcoin’s current price hover below $100,000 amidst retail traders’ apprehensions presents a complicated view for potential investors. While small investors are pulling back, larger holders appear to be seizing this opportunity for accumulation, historically correlating with price increases. Imran Lakha’s projections about impending volatility normalization and the technical indicators’ support levels all contribute to an optimistic outlook for Bitcoin’s future performance.
Original Source: www.fxstreet.com
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