Bitcoin Holds Near $40K Following Increased Accumulation Around Dip! What’s Next For BTC Price?

The week began with Bitcoin’s price taking a bearish turn, causing panic among traders as it dipped below $40K, briefly touching lows near $38,500. This decline has raised critical questions about the market’s future direction. Traders now wonder if this signifies a decline in anticipation for the 2024 bull run or if it’s another chance to accumulate at more attractive prices. Despite the setback, Bitcoin has reclaimed the $40K mark, driven by rising accumulation, offering hope for renewed buying demand.

Bitcoin’s Netflow Becomes Negative

The recent decline in Bitcoin’s value can be traced back to a significant rise in GBTC outflows to Coinbase Prime, triggered by Grayscale. However, amidst this downturn, other ETF providers have capitalized on the opportunity to acquire substantial quantities of Bitcoin, a strategic move that many analysts are applauding as astute.  

Over the last 24 hours, the Bitcoin market witnessed a collective liquidation totaling around $45 million. This figure comprises roughly $10.8 million from buyers’ long positions and over $34.3 million from sellers’ short positions. This trend shows a robust battle between buyers and sellers within the $38K to $40K price range.

As per insights provided by IntoTheBlock, Bitcoin’s Netflow remains in the negative zone, implying that investors are actively accumulating BTC during this dip. Currently, the Netflow registers at -1.91K BTC, indicating that the outflow of Bitcoin surpasses the inflow.

Should this trend of negative Netflow continue, it could potentially decrease selling pressure on exchanges. With a reduced supply of Bitcoins available for selling, the supply-demand trend might hint at a price surge, particularly if demand remains steady or rises. This scenario could increase the chances of a robust recovery for BTC price.  

What’s Next For BTC Price?

Recently, Bitcoin has seen significant volatility as it rebounded from the low of $38,500 and surged toward $40K. The price was effectively defended near the low due to robust accumulation. Despite this, sellers remain active near resistance levels. Currently, Bitcoin’s price trades at $40,005, showing an increase of over 2.6% from yesterday’s figure.

Buyers are now attempting to push Bitcoin’s value above the EMA20 trend line, although sellers are resisting at higher prices. A push above $40K, followed by momentum around $43K, could enhance buyer confidence, sparking new interest. This could potentially send Bitcoin’s price to the $46K-$47K mark.

Conversely, if support is established at $38K, there could be an immediate move towards a decrease to $36,400. Nonetheless, this level may also draw considerable buying interest.

Presently, the ratio of long to short positions is undergoing a substantial surge, standing at a current value of 1.3821, signifying a bullish sentiment. This data implies that approximately 42% of positions are in the short category, anticipating a downward movement in the price of BTC. In contrast, 58% of positions belong to the long category, expressing confidence in a price increase.