Why Bitcoin Price Running into Strong Resistance at $23k is Probably a Healthy Prelude to the Next Pump
On January 22, the leading cryptocurrency, Bitcoin, is trading sideways, with the price remaining within a limited range of $22,500 to $23,350. Bitcoin witnessed a strong rise, which might be attributed to whale activity, public buying, and cryptocurrency's ability to disrupt financial systems.
After a long period of turbulence, the crypto market's stability has returned, and many people are now optimistic about the coin's future.
According to Santiment, the majority of the $1 billion+ accumulation over the last 15 days came from 1-1000 BTC transactions. Furthermore, whales with 1000 - 10,000 BTC holdings accounted for 83% of the accumulation.
According to GlassNode data, the amount of bitcoin held or lost is at a 5-year high. This demonstrates that the price of bitcoin, in particular, has risen dramatically in recent weeks and months. This is also demonstrated by the fact that leverage has decreased. Bitcoin trading is becoming increasingly popular these days.
When the market is on your side, Bitcoin can provide a nice income boost. If the market goes against you, Bitcoin trading becomes too risky and loses its potential value.
By 2022, many people who invested in cryptocurrencies will have lost money. Even during the current recovery, demand for leverage remains very low. Many believe this is because of significant investments in cryptocurrency mining efforts and staking rather than leveraging.
Since December 22, 2022, the estimated leverage ratio of bitcoin has decreased and remained volatile. The current ratio was last this low on May 22. But how does this affect the market?
Bitcoin's rapid growth has made it a risky investment for many. Some investors avoid using leverage by investing more money in coins that are
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