Originally published on: December 10, 2024
Bitcoin investors can breathe a sigh of relief as analysts predict that future price drops will be less severe compared to the recent 10% plunge. The decrease in realized profits and selling pressure indicates a more stable market ahead.
According to Bitfinex analysts, the sharp decline in realized profits suggests that future price dips will be more gradual than the sudden drop experienced last week. This comes after Bitcoin dropped from over $100,000 to under $93,000 in just 24 hours, triggering significant liquidations of long positions.
Despite the recent volatility, Bitcoin is showing signs of stabilization, with market analysts noting a cooling off in profit-taking and sell-side pressure. This could lead to a more balanced market phase with less erratic price movements in the medium term.
At the time of writing, Bitcoin is trading at $97,483, indicating a slight uptick in the price. Analysts also point out that funding rates are stabilizing, further supporting the view of a more contained volatility in the coming weeks.
While some remain cautious about the market’s stability, long-term holders are still enjoying significant gains with an average price increase of 400%. However, analysts warn that offloads from long-term holders could signal a potential market top in the near future.
As the market continues to evolve, it’s essential for investors to stay informed and conduct their own research before making any investment decisions. By subscribing to newsletters like Markets Outlook, investors can gain critical insights to navigate the crypto market effectively.
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