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3 reasons why Bitcoin price may surge to $123k in January
#Day
3 reasons why Bitcoin price may surge to $123k in January
Bitcoin balances on exchanges are falling
FTX distributions and Donald Trump inauguration
Bitcoin price has strong technicals
Bitcoin price has crashed this week amid ongoing jitters about the bond market and a relatively hawkish Federal Reserve.
Bitcoin (BTC) fell below $95,000, triggering a steeper sell-off among altcoins. However, there are signs that the coin may bounce back and possibly hit $122,000 in January.
Bitcoin balances on exchanges are falling
One key reason why BTC’s price may rebound in January is the ongoing imbalance between demand and supply. Demand has continued to rise this year, as evidenced by growing ETF inflows.
Spot Bitcoin ETFs have added a net $1.3 billion in assets this year, while companies like MicroStrategy have continued rising. Bitcoin whales have also continued to accumulate, adding 34,000 coins since December.
Bitcoin whales are still accumulating
Bitcoin whales are still accumulating | CryptoQuant
Supply is also shrinking, as seen in Bitcoin balances on exchanges. According to CoinGlass, the number of BTC coins held on exchanges has dropped to its lowest level in years. Balances now stand at 2.1 million, down from 2.72 million in January 2024. Therefore, this imbalance between demand and supply could soon benefit Bitcoin.
Bitcoin balances
Bitcoin balances on exchanges | CoinGlass
FTX distributions and Donald Trump inauguration
Another major Bitcoin price catalyst is the upcoming distribution of $16 billion from the FTX Estate to investors and creditors. Most of these funds are currently held in stablecoins like Tether (USDT) and USD coin (USDC). While some of the recipients will convert them into cash, some of the money will be changed into cryptocurrencies like Bitcoin.
Additionally, Donald Trump will be sworn in on January 20, ushering in a new era of crypto regulations. While much of this has already been priced in, there is a likelihood that BTC and other altcoins will rise ahead of the event and Gary Gensler’s resignation.
You might also like: Bitcoin could drop under $88k if it fails to hold $95k support: analyst
Bitcoin price has strong technicals
Bitcoin price
BTC price chart | Source: crypto.news
Bitcoin’s technical indicators also suggest the potential for further upside in January. On the weekly chart, BTC has formed a bullish pennant pattern, shown in blue. This pattern consists of a long vertical line followed by a triangle-shaped consolidation. The recent sideways movement is part of this pennant formation.
Bitcoin’s uptrend is being supported by the 50-week and 100-week Exponential Moving Averages, a sign that the bullish trend is intact. The Market Value and Relative Value indicator is moved to 2.4, meaning that it is still cheap.
Most importantly, Bitcoin has yet to reach the target of its cup-and-handle pattern. The cup formation has a depth of 75%. Measuring the same distance from the upper side of the cup points to a target of $123,000.
3 reasons why Bitcoin price may surge to $123k in January
Bitcoin balances on exchanges are falling
FTX distributions and Donald Trump inauguration
Bitcoin price has strong technicals
Bitcoin price has crashed this week amid ongoing jitters about the bond market and a relatively hawkish Federal Reserve.
Bitcoin (BTC) fell below $95,000, triggering a steeper sell-off among altcoins. However, there are signs that the coin may bounce back and possibly hit $122,000 in January.
Bitcoin balances on exchanges are falling
One key reason why BTC’s price may rebound in January is the ongoing imbalance between demand and supply. Demand has continued to rise this year, as evidenced by growing ETF inflows.
Spot Bitcoin ETFs have added a net $1.3 billion in assets this year, while companies like MicroStrategy have continued rising. Bitcoin whales have also continued to accumulate, adding 34,000 coins since December.
Bitcoin whales are still accumulating
Bitcoin whales are still accumulating | CryptoQuant
Supply is also shrinking, as seen in Bitcoin balances on exchanges. According to CoinGlass, the number of BTC coins held on exchanges has dropped to its lowest level in years. Balances now stand at 2.1 million, down from 2.72 million in January 2024. Therefore, this imbalance between demand and supply could soon benefit Bitcoin.
Bitcoin balances
Bitcoin balances on exchanges | CoinGlass
FTX distributions and Donald Trump inauguration
Another major Bitcoin price catalyst is the upcoming distribution of $16 billion from the FTX Estate to investors and creditors. Most of these funds are currently held in stablecoins like Tether (USDT) and USD coin (USDC). While some of the recipients will convert them into cash, some of the money will be changed into cryptocurrencies like Bitcoin.
Additionally, Donald Trump will be sworn in on January 20, ushering in a new era of crypto regulations. While much of this has already been priced in, there is a likelihood that BTC and other altcoins will rise ahead of the event and Gary Gensler’s resignation.
You might also like: Bitcoin could drop under $88k if it fails to hold $95k support: analyst
Bitcoin price has strong technicals
Bitcoin price
BTC price chart | Source: crypto.news
Bitcoin’s technical indicators also suggest the potential for further upside in January. On the weekly chart, BTC has formed a bullish pennant pattern, shown in blue. This pattern consists of a long vertical line followed by a triangle-shaped consolidation. The recent sideways movement is part of this pennant formation.
Bitcoin’s uptrend is being supported by the 50-week and 100-week Exponential Moving Averages, a sign that the bullish trend is intact. The Market Value and Relative Value indicator is moved to 2.4, meaning that it is still cheap.
Most importantly, Bitcoin has yet to reach the target of its cup-and-handle pattern. The cup formation has a depth of 75%. Measuring the same distance from the upper side of the cup points to a target of $123,000.
next 2026 chose ??
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#$XRP #AIMarketCapDip #$ARB
#MEME #USJobOpeningsSurge
DON'T WORRY MY EAGLE FAMILY🥰 👨👩👦The answers for the whole week are in this one post.💥31th to 5th January 💥BIG🔸HIGH, YEAR🔸SPACE, TRUST🔸REVIEW, GROWTH, MISSION🔸REWARDS, LOYALTY, PRODUCT🔸ACHIEVE, DISCOVER, MONUMENT, INNOVATE #points #REWARDS #binance #WORDOFTHEDAY✅ #writetoearn
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Bitcoin price fell to $65,000.
Which led to $400 million worth of liquidations and shook the cryptocurrency markets
Be careful, trade now without a plan
You have the opportunity to profit only by
Follow-up - Determine the correct time for purchasing alternative currencies that will rise in the coming months - Focus when choosing the trading currency.
Do everything for yourself, do not resort to others
Learning comes from experience
#day
Which led to $400 million worth of liquidations and shook the cryptocurrency markets
Be careful, trade now without a plan
You have the opportunity to profit only by
Follow-up - Determine the correct time for purchasing alternative currencies that will rise in the coming months - Focus when choosing the trading currency.
Do everything for yourself, do not resort to others
Learning comes from experience
#day
🔥🔥 $LUNC
LUNC
0.00016916
+6.69%
Crash from $119 to $0.00001 in a Single Day? 😱
Let’s dive into the details:
What Happened to LUNC?
LUNC (Terra Luna Classic) was a major player in the Terra ecosystem until May 7, 2022, when its price plummeted from $119 to $0.00001 in a single #day
Key Reasons Behind the Crash
1. UST Depeg
TerraUSD (UST), an algorithmic #stablecoin pegged to the US dollar, lost its peg.
The depeg created massive sell-offs in both UST and LUNC.
2. Liquidity Crisis
Terra faced a severe liquidity shortage, making it nearly impossible for investors to sell.
This illiquidity worsened the price collapse.
3. Market Panic
As LUNC's price tumbled, panic set in. Investors rushed to sell, leading to further decline.
4. Algorithmic Flaws
The Terra protocol's algorithm, designed to stabilize UST, was inherently flawed, exacerbating the crash.
5. Trust Erosion
The collapse shattered confidence in algorithmic stablecoins and the Terra ecosystem.
Consequences of the Crash
Billions of dollars were wiped out.
Thousands of investors faced devastating losses.
The Terra ecosystem's credibility took a severe hit.
Lessons from the Collapse
The LUNC crash is a stark reminder of the volatility and risks in the crypto market. It underscores the importance of understanding the underlying technology and risks of algorithmic systems before investing.
Stay informed, manage risk, and tread carefully in the unpredictable world of crypto.
Disclaimer: Not financial advice. This post includes third-party insights and opinions
#HaveYouBinanced #Share1BNBDaily #2024withBinance $BNB
LUNC
0.00016916
+6.69%
Crash from $119 to $0.00001 in a Single Day? 😱
Let’s dive into the details:
What Happened to LUNC?
LUNC (Terra Luna Classic) was a major player in the Terra ecosystem until May 7, 2022, when its price plummeted from $119 to $0.00001 in a single #day
Key Reasons Behind the Crash
1. UST Depeg
TerraUSD (UST), an algorithmic #stablecoin pegged to the US dollar, lost its peg.
The depeg created massive sell-offs in both UST and LUNC.
2. Liquidity Crisis
Terra faced a severe liquidity shortage, making it nearly impossible for investors to sell.
This illiquidity worsened the price collapse.
3. Market Panic
As LUNC's price tumbled, panic set in. Investors rushed to sell, leading to further decline.
4. Algorithmic Flaws
The Terra protocol's algorithm, designed to stabilize UST, was inherently flawed, exacerbating the crash.
5. Trust Erosion
The collapse shattered confidence in algorithmic stablecoins and the Terra ecosystem.
Consequences of the Crash
Billions of dollars were wiped out.
Thousands of investors faced devastating losses.
The Terra ecosystem's credibility took a severe hit.
Lessons from the Collapse
The LUNC crash is a stark reminder of the volatility and risks in the crypto market. It underscores the importance of understanding the underlying technology and risks of algorithmic systems before investing.
Stay informed, manage risk, and tread carefully in the unpredictable world of crypto.
Disclaimer: Not financial advice. This post includes third-party insights and opinions
#HaveYouBinanced #Share1BNBDaily #2024withBinance $BNB