Bitcoin Price Falls Below $43k, Lower Volatility Expected
Bitcoin (BTC) has experienced a slight decline in price, falling below $43,000 as part of a broader cooling down of the crypto market. However, despite this dip, BTC is still holding strong with lower volatility. At the time of writing, BTC is trading at $42,800, marking a 0.9% decline in the past 24 hours. The asset’s market cap remains above $838 billion with a daily trading volume exceeding $24 billion.
Bitcoin’s Relative Strength Index (RSI) Indicates Potential Price Increase
Data from Santiment reveals that Bitcoin’s RSI has risen from 47 to 65 within the last 24 hours. The RSI is slightly above the important 60 mark, suggesting the possibility of a price increase. It is worth noting that during the week between Christmas and New Year’s Day, the crypto market typically experiences a cooling down period.
Decline in Global Crypto Market Capitalization
The global crypto market capitalization has also seen a slight decline of 0.6% over the past day, dropping from $1.67 trillion to $1.65 trillion.
Decrease in Bitcoin Whale Activity
Santiment reports a decrease in Bitcoin whale activity over the past four days. The number of whale transactions involving at least $100,000 worth of BTC has dropped from 15,295 trades on December 22 to 6,379 unique transactions currently.
Increase in Bitcoin’s Total Open Interest and Binance Funding Rate
On the other hand, Bitcoin’s total open interest (OI) has increased by approximately $120 million in the last 24 hours, rising from $7.31 billion to $7.43 billion. This rise in OI is accompanied by a surge in long-position holders, as indicated by the BTC Binance funding rate, which has increased from 0.01% to 0.03%, according to Santiment.
Bitcoin Miners’ Revenue Soars
A recent report states that Bitcoin miners’ revenue has seen a remarkable 400% increase this year. BTC’s price rally of 153% over the past year occurred after the asset reached a local bottom of $15,800 following the collapse of the FTX crypto exchange.
Hot Take: Lower Volatility Provides Opportunities for Traders
The recent dip in Bitcoin’s price below $43,000 may be seen as an opportunity for traders due to the lower volatility currently experienced in the market. With Bitcoin’s RSI indicating the potential for a price increase and an increase in long-position holders, traders can carefully analyze market trends and make informed decisions. While the global crypto market capitalization has seen a slight decline, Bitcoin’s total open interest continues to rise. These factors combined may create favorable conditions for traders looking to capitalize on market movements.
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