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26.01.2023 04:18 PM
Bitcoin did not have time to rise in price, as they rushed to sell it.

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The price of one bitcoin coin has remained around $23,000. Since the price has not significantly altered over the past day, we can infer that the cryptocurrency is once again waiting. It is awaiting ECB or Fed meetings, new cryptocurrency market data, or simply important people who will decide its future course of movement. The upward trend is still being maintained in one way or another, but this does not mean that the "bearish" tendency is finished. And this is why:

We previously discussed how most miners hurried to sell their amassed coins as soon as the price of bitcoin increased to $22,000–$23,000. The prolonged period during which bitcoin was priced below the cost of production and the excellent credit standing of mining companies led to this behavior. In other words, miners require cash to carry on mining, pay off loans, and maintain equipment. After bitcoin's rise to $23,000, Glassnode stated today that nearly 98% of short-term investors (who purchased it fewer than 155 days ago) are in the black. The company warns that the profitability of existing investments could lead to their closure because few people today still think that bitcoin will continue to increase. Bitcoin may swiftly revert to its previous positions from one month ago if traders decide to sell their long holdings (which is highly likely).

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As you can see, many firms and market participants are skeptical about the current growth. Everyone is aware that bitcoin might increase, but is this tendency "bullish"? Explosive growth this year is unlikely, according to even the most upbeat economists and speculators. For an extended period, the Federal Reserve's and other central banks' interest rates will remain at their highest levels, with room to rise by 1-2% in the interim. For bitcoin and other crypto assets, all of this is more detrimental than advantageous. The resulting conclusion is as follows: although there is no longer any question of a "bullish" trend, as we previously stated, bitcoin is perfectly capable of occasionally demonstrating growth. Additionally, according to Glassnode, more bitcoins were sold last month than were mined. Of course, a collapse won't likely result from the sale of 1,600 coins. The behavior of the cryptocurrency is generally observed near the nearest significant resistance level, or around the level of $24,350.

The drop to $12,426 is currently being postponed because "bitcoin" quotes have surpassed the $18,500 threshold in the last 24 hours. The value of the coin is currently increasing by $24,350. Rebounding from this point can put bitcoin back on a downward trend; surpassing it can make the continuation of the "bearish" trend uncertain. We don't think the "bullish" trend has started yet, and we don't think there will be any further bitcoin declines in 2023. For "bitcoin," the fundamental background is still fairly complicated.

Paolo Greco,
Analytical expert of InstaForex
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