Bitfinex analysts foresee further Bitcoin correction over the holidays

Bitcoin faces the risk of a price correction during the New Year holidays due to selling pressure from short-term investors. The The Block quoted Bitfinex derivatives chief Jagg Kuner.

On December 20, the price of the first cryptocurrency retested the $44,000 mark. However, by December 26, the price had fallen below $42,000. At the time of writing, Bitcoin was trading near $42,900.

“We expect greater downside if short-term holders and retail leverage continue to play a dominant role in the market and trigger a pullback amid thinning liquidity during the holiday period,” said the expert.

According to him, a Bitcoin correction is possible even if the price rises above $44,000. This level is a take-profit zone for mid-term investors, Kuner noted. The category includes market participants who bought the cryptocurrency in the last 18–24 months.

He added that short-term holders were among the main drivers of the latest pullback. Closing profitable positions in Bitcoin by these holders led to an overheating of the market.

Earlier CryptoQuant allowed the possibility of Bitcoin breaking above $50,000 in early 2024. The same forecast was given by Matrixport analysts.

Messari founder and CEO Ryan Selkis expressed confidence in the continuation of the digital-gold rally in 2024. He believes Bitcoin will outperform most assets in terms of returns.