Bitcoin (BTC) is facing a correction due to pressure from short-term holders and illiquid market conditions during the holidays, according to analysts at the crypto exchange Bitfinex, writes RBC Crypto with reference to The Block. From December 21 to December 26, the BTC rate fell from $44 thousand to $41.8 thousand, but on December 27 it recovered to $43 thousand.
According to Kooner, Bitcoin is at risk of a correction above $44,000 because that level serves as a profit realization point for medium-term holders—individuals who have held their Bitcoin holdings for 18 to 24 months. According to the specialist, profit-taking by a group of short-term holders was the main reason for the recent pullback in Bitcoin prices.
Based on historical data, Bitfinex believes the entire cryptocurrency market could face a pullback before rising to a high of $3.2 trillion by the end of 2024.
According to BitRiver analysts, the fall in the price of Bitcoin to levels around $42 thousand is also associated with profit-taking by market participants and low buyer activity amid the Christmas holidays. At the same time, according to the mining company’s estimates, Bitcoin could reach $50 thousand by January 8, 2024.
Source: Cryptocurrency
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