The post Bitcoin Price Forecast For Next Week: Bitcoin Might Struggle Above $40,000 As Profit-Making Holders Surge appeared first on Coinpedia Fintech News
The current trends in Bitcoin price indicate declines during recent climbs, yet the trajectory points to reaching the $40,000 mark in the coming week. Support levels have been increasingly robust, suggesting that the asset is building a solid foundation for growth. Nevertheless, Bitcoin’s progress may be impacted by investor behavior, which shows a pattern of accumulation when prices dip, followed by a selloff when prices peak. This could potentially influence Bitcoin’s ability to maintain its rally at or around the $40,000 level, as profit-taking may cause fluctuations.
Nearly 41 Million Addresses Are Now In Profit
In the past few weeks, Bitcoin’s open interest has been on an upward trajectory, touching $16 billion amid whale accumulation. However, there’s a threat for long-position holders as the BTC price might witness a notable selloff near the $40K mark. So far, in the last two days, over $150 million worth of short-positions have been liquidated.
According to insights from IntoTheBlock, close to 82% of Bitcoin holders have now become profitable as BTC slowly heads toward the $40K dream due to ETF hype. This sentiment is bullish, with expectations of a price uptick in anticipation of an upcoming ETF launch. Nevertheless, there is a rising concern over the chances of a considerable liquidation that may still be on the edge.
Around the $37K-$43K zone, 2.2 million addresses are in loss, and a significant portion will become profitable if the BTC price hits the $40K level next week. As a result, there will be a high chance of a shift in sentiment toward selling in profit as BTC touches an 18-month high.
Should Bitcoin experience a pullback of $700-$800 upon nearing the $40K threshold, it may trigger an increase in short positions. This could pressure short-term whale holders to sell their positions profitably, potentially leading to a price drop and a reevaluation of the $35K support level.
What’s Next For BTC Price?
Bitcoin recently surged past its ascending channel pattern. However, a subsequent wave of profit-taking was seen as BTC’s price failed to hold momentum above $38K. As of writing, Bitcoin’s price is trading at $37,182, surging over 0.25% from yesterday’s rate.
The Relative Strength Index (RSI) continues to hover around the overbought zone, suggesting that buyers have been aggressively supporting the market. A continued push could see efforts to drive the BTC price above $38K. A success in this will set Bitcoin’s next target at $40,000 in the coming week.
Conversely, a fallback into a bearish channel would signal a market rejection of the recent highs, potentially dragging the price toward the 20-day exponential moving average. A profit-taking sentiment among holders will continue to halt surges. In a bearish case, Bitcoin will once again test buyers’ patience near the $34K-$35K zone.
#Bitcoin #Cryptocurrency #PriceAnalysis [Source: Coinpedia]