Bitcoin Miners Acquire $482M Worth of BTC Amid Downturn
On January 19, the price of Bitcoin dipped to a 40-day low of $40,700, sparking concerns of major liquidations if it loses the $40,000 support. However, on-chain data reveals that Bitcoin miners stepped in to defend the crucial support level. Cryptoquant’s miner reserve metric shows that miners increased their BTC holdings by 12,058 BTC on January 19 alone. This acquisition is worth approximately $482 million, suggesting that miners are bullish and willing to invest to prevent the slump from continuing.
Bullish Miners & Derivatives Traders Defend Bitcoin at $40,000
In addition to the miners, bullish traders in the Bitcoin derivatives markets also appear to be optimistic amid the price slump. The BTC open interest, which tracks the value of all active derivatives contracts, has only shed 2% as the price moved from $18.5 billion to $18 billion. This indicates that traders holding LONG contracts are doubling down on their positions, expecting a quick rebound in the spot markets. The actions of both miners and derivatives traders show their confidence in Bitcoin’s resilience.
BTC Open Interest Holds Up Firmly During Price Slump
During the price slump on January 19, the BTC open interest held up steady, indicating that derivatives traders were not closing out their positions. This suggests that they are still holding on to their LONG contracts and believe in a potential price recovery. The robust open interest shows that there is widespread optimism among traders, which could contribute to the stability of BTC above $40,000.
Can Bitcoin Stay Above $40,000? Analysts Weigh In
The recent dip below $41,000 has raised concerns about the possibility of triggering stop-loss orders and margin calls if the $40,000 support level is lost. However, the significant acquisition by miners and the resilience of bullish derivatives traders might provide enough demand to keep Bitcoin above $40,000. IntoTheBlock’s data also shows significant support in the $40,000 area, with 679,910 current addresses acquiring 313,000 BTC at the maximum price of $40,313. If this support holds firmly, Bitcoin’s price is likely to avoid further downward movement in the short term.
Bitcoin Price Forecast: Strong Support at $40,000, Upside Potential at $45,000
Looking ahead, Bitcoin bulls could regain control if the price manages to climb above the $45,000 barrier. However, the immediate focus will be on whether Bitcoin can stay above $40,000 and avoid further downturns. With miners and derivatives traders actively defending their positions, as well as the strong support at $40,000, the outlook appears optimistic. Traders will closely monitor Bitcoin’s price movements to assess if it can maintain its current levels or push higher in the coming days.
Analyst comment
The news is positive for the Bitcoin market. With miners acquiring a significant amount of BTC and derivatives traders remaining optimistic, there is confidence in Bitcoin’s resilience. The market is likely to stay above $40,000 with potential upside to $45,000 if support holds. Traders will monitor price movements for further assessment.
