Bitcoin price is range bound close to the psychologically important $40,000 level, nearly two weeks post Spot ETF approval by the Securities and Exchange Commission. Retail traders holding less than 1 BTC have shed their holdings, evident by the decline in Bitcoin wallets since October 2023.
Bitcoin price could plummet to the support zone between $38,304 and $38,957, in the event of further correction in the asset.
Also read: Bitcoin price eyes comeback above $40,000, traders unsure of where BTC is headed next
Bitcoin small wallets holding up to 1 BTC on a decline. Source: Santiment
Bitcoin price is in a tight range close to the psychologically important level of $40,000. BTC price is $40,132, at the time of writing. The asset yielded nearly 3% weekly losses for holders. The ETF approval likely catalyzed a correction in Bitcoin, ushering a decline in BTC from its 2024 peak of $48,989.
Bitcoin price is at risk of dipping to its support zone between $38,304 and $38,957 where 512,030 wallet addresses acquired 258,320 BTC.
BTC/USDT 1-day chart
If Bitcoin price sees a daily candlestick close above resistance at $41,466, it is likely to invalidate the bearish thesis and send BTC towards its next key resistance at $43,074.
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.
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.
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.
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.