Bitcoin‘s (BTC) price has seen incredible events over the last 20 days. It recently fell below the $40,000 level, triggering chaos in the cryptocurrency world. However, investors who took positions afterwards have recently turned a profit.
Current Status of Bitcoin Investors
Between January 23-26, the value of Bitcoin, which was trading at the $40,000 level, indicated that BTC buyers who made purchases shortly before had entered a profitable position and the price rose. The level at which the price dropped had previously served as support.
The positive upward trend was reflected in the charts, suggesting a rise due to purchases made at higher prices following the recent decline.
Comparing the current situation with the 2021 bull run, it can be seen that if the Short-Term Holder Realized Price reaches $38,300 and the general Realized Price hits $60,000, the potential for a stronger bull run is indicated.
Current Status of Bitcoin Addresses
While all this was happening, a decrease in the number of addresses holding less than 1 Bitcoin was observed following the price’s instant peak of $49,000. The number of these addresses seems to have reached a bottom, and as of the time of writing, a notable consolidation structure around the $40,000 region is not escaping investors’ attention. This change is considered a reflection of the small Bitcoin addresses’ holdings becoming increasingly stable after the recent price drop.
The stabilization and end of the decrease in the number of addresses holding less than 1 Bitcoin around the $40,000 level points to an important juncture for Bitcoin. This could reflect that small market participants are moving away from panic selling and starting to regain confidence in the market.
As a second point, the consolidation occurring in the $40,000 region could also indicate a support area. If the $40,000 level is considered a strong support, it could be seen as an entry point for more investors to buy. Such a directional move in BTC could bring about a greater upward momentum.
As of the time of writing, BTC was trading at $43,375.36. This price level represented a 0.29% increase over 24 hours. Additionally, Bitcoin’s 24-hour trading volume also saw a 48% increase during this period, rising above the $22 billion mark.
