The co-founders of the blockchain analysis platform Glassnode say Bitcoin profit-taking is slowing while identifying two factors that could send BTC higher this month.
Glassnode and Swissblock co-founders Jan Happel and Yann Alleman, who share the social media handle Negentropic, say that the net realized profit/loss metric, which tracks whether Bitcoin holders are selling at a loss or a profit, indicates profit-selling has declined from the peaks in November and December.
They also say rallies may reignite for Bitcoin ahead of pro-crypto US President-elect Donald Trump taking office on January 20th due to investors rebalancing their portfolios at the start of the year and the markets reopening after the holiday closure.
“Profit-taking is slowing as BTC stabilizes at $94,000-$95,000, making the zone less appealing to investors.
For upward momentum, new liquidity and participants are key. Market reopening and portfolio shifts could spark action soon – possibly before Trump’s inauguration day.”
Bitcoin is trading for $97,429 at time of writing, up 4.2% in the last 24 hours.
The analysts also suggest that altcoins may start to outperform Bitcoin as the Bitcoin Dominance (BTC.D) chart, which tracks how much of the total crypto market cap belongs to BTC, remains below a recent high of about 61%. At time of writing, the BTC.D is at 57.6%.
They also note that Ethereum (ETH) may have found a market bottom against Bitcoin (ETH/BTC).
“An altcoin rebound brewing? ETH/BTC kicks off the week with strong momentum, while BTC dominance struggles to keep its bullish trend on the weekly chart. Bitcoin’s dominance is losing steam, and ETH/BTC has printed a higher low, possibly signaling a bottom. Is it time for altcoins to shine, at least for a while?”
ETH/BTC is trading for 0.03565 BTC ($3,475) at time of writing.
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