- Bitcoin's profit bid reached 89%, prompting investors to exercise caution.
- The price of Bitcoin was 5.59% higher than the average price at which all coins were purchased.
Bitcoin [BTC] climbed above $44,000 just before Christmas, giving its holders and crypto enthusiasts great reason to celebrate.
How things change!
At the time of this writing, King Coin was trading 161% higher than at the same time last year, when sentiment around cryptos was at an all-time low.
The stunning turnaround has reignited hope for a better future for the coin in particular and the market in general.
The best part was that the appetite for Bitcoin remained strong. According to AMBCrypto's analysis of Hyblock Capital's data, there was a sense of greed in the market, raising hopes for more accumulation in the new year.
Source: Hyblock Capital
But amid the bullish move, a troubling signal caught analysts' attention and threatened to put the brakes on Bitcoin's meteoric rise.
Will weak hands take profits?
Bitcoin supply gains reached 89%, a figure deemed “cautious” by popular on-chain research firm Santiment.
In other words, the likelihood of investors booking profits has increased significantly, potentially creating near-term bearish pressure on BTC.
Santiment stated that a ratio in the 40-70% range was more desirable. However, current levels require more caution from investors as we enter the new year.
Source: Santiment
To better understand the situation, AMBCrypto took a look at Santiment’s popular MVRV ratio indicator.
At press time, the price of Bitcoin was 5.59% higher than the average price at which all coins were purchased. This appeared to be a safe level compared to the previous peaks of 16% and 15% during the ongoing rally.
Source: Santiment
Read BTC price prediction 2023-24
Meanwhile, few market experts continued to put their weight on the world's largest cryptocurrency. In a statement shared with AMBCrypto, Shivam Thakral, CEO of Indian cryptocurrency exchange BuyUcoin, noted:
“The crucial meeting between Blackrock, Nasdaq and SEC on Bitcoin ETF sent strong positive signals that resulted in positive market sentiment. As we enter the last week of 2023, the crypto market is gaining more and more momentum to maintain momentum into 2024.”
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