Bitfinex Analysts Warn of Bitcoin’s Potential Decline to $36,000

The breach of the $39,000 level has increased pressure on Bitcoin’s price from speculators, according to analysts at the cryptocurrency exchange Bitfinex.

? The sharp fall in $BTC, has led to a significant decline in unrealized profits, especially among short-term HODLers.
The trend could contribute to increased selling pressure in the market ?

Get the details in Bitfinex Alpha:https://t.co/G094uT13hh pic.twitter.com/chCzbubiHO

— Bitfinex (@bitfinex) January 22, 2024

“The tendency of short-term holders to react more acutely to brief market fluctuations suggests the possibility of a further significant correction, with key support levels only at $38,000 and $36,000,” the experts wrote.

The report indicates that bearish sentiment prevails in the market.

“The next significant levels for Bitcoin that could provide support are approximately between $38,000, which is close to the realized price of short-term holders at $38,307, and $36,000,” the analysts wrote.

They also emphasized that the current correction has wiped out more than half of the unrealized profits among the aforementioned group of investors.

“Many holders, especially those who acquired bitcoins more than a month ago, are now exiting the market at a loss,” the company noted.

X-user Ali noted that over the past two weeks, Bitcoin whales have sold about 70,000 BTC worth approximately $3 billion.

#Bitcoin whales have sold around 70,000 $BTC over the past two weeks, worth around $3 billion! pic.twitter.com/1yaeIrmkRc

— Ali (@ali_charts) January 23, 2024

Due to increased volatility, the volume of liquidations of leveraged cryptocurrency positions exceeded $320 million in 24 hours, according to Coinglass. The majority of these were longs ($286 million). 

In the past day, Bitcoin’s price has decreased by 4.4%, according to CoinGecko. At the time of writing, the asset is trading around $38,830. 

Earlier, CoinDesk journalists reported on the sale of GBTC shares worth $908 million from the bankruptcy estate of the company FTX.