Following a strong performance in the U.S. stock market at the end of last week, Bitcoin’s daily trading session closed above $17,000 on Sunday for the first time in nearly a month. The flagship cryptocurrency which is currently changing hands for around $17,200 per BTC, has met with a moderate level of daily trading volume on major exchanges and an increase in volatility. This has been at historic lows up until now and further suggests that the relief rally might not have much-staying power.
Time To Sell Bitcoin?
According to information acquired by CryptoQuant, a declining number of investors are taking a loss while selling their Bitcoin holdings. This comes after the ASOPR (Adjusted Output Profit Ratio) for Bitcoin has reached a value of 0.99. In a bear market, the value 1 for ASOPR, functions as a significant point of resistance.
The ASOPR measures the proportion of profitable outputs that were spent across a stipulated time period (greater than an hour in duration). The number of investors selling for a profit increases as the value rises above 1. When the value is less than 1, it means more investors are selling at a loss. The data further sheds light on the fact that it might be prudent to consider cashing in on BTC earnings as a result of this resistance.
However, according to another data point shared by renowned crypto analyst Sulivan, if the price of Bitcoin (BTC) reaches $20,000–$22,000, it would enter the S2F green zone (as shown below), which may cause another immediate sell-off. He also stated that such an increase might take place later on in this week if the U.S. CPI statistics turned out to be better than the general projections.
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Furthermore, he expressed concern that the macroeconomic situation and the likelihood of prolonged recessions in the United States and other nations could make 2023 a worse year for Bitcoin.
Bitcoin’s (BTC) Key Price Barrier
CryptoGodJohn, a prominent crypto analyst and trader, believes that the level of $17,600 is crucial to the Bitcoin price. If the leading cryptocurrency breaches the $17,600 level, bulls will be able to pursue the $20,000 mark. However, failure to break above that level, according to the expert, might lead to the invalidation of his bullish thesis and a BTC price retracement below $15,500.
$17,600 is most important level for me for $BTC
Flip $17,600 I wouldn’t be surprised to see a move towards $20k
Reject likely revisit $15.5
— Johnny (@CryptoGodJohn) January 9, 2023
As things stand, the Bitcoin (BTC) price is currently being traded at $17,242. This represents an increase of 1.73% on the day, in contrast to a gain of 3.26% during the week as per the crypto market tracker CoinMarketCap.
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