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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Analyst Points To Increasing Caution In Bitcoin Market Despite Price Surge

Semilore Faleti
Semilore Faleti
1 year ago
3 mins read
Bitcoin

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Created by industry experts and meticulously reviewed
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In the past week, Bitcoin recorded an overall positive performance, gaining by 3.45%, according to data from CoinMarketCap. This price rise adds to BTC’s bullish form in the last 30 days, during which the maiden cryptocurrency has surged by 16.78%. However, despite this market uptick, there appears to be a growing trend of caution among Bitcoin traders, indicating fear of a potential price dump. 

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Analyst Highlights Evidence Of Growing Caution In The Bitcoin Market

In an X Post on Saturday, popular crypto analyst Ali Martinez shared an interesting observation regarding the Bitcoin market with his 37,000 followers. 

According to Martinez, there is a significant decrease in the estimated leverage ratio in the BTC market across all exchanges. This indicates that traders are reducing their leverage risk and are now treading carefully in the BTC market, even amidst the current price gain. 

As #Bitcoin price climbs, we see a decrease in the Estimated Leverage Ratio – a sign that traders are reducing their leverage risk. This suggests a more cautious approach in the #crypto market despite the $BTC price uptick. pic.twitter.com/421FjfyV6b

— Ali (@ali_charts) December 22, 2023

For context, leverage is a trading function that allows users to borrow funds in order to increase the size of a position beyond what would be possible with one’s own capital alone. Leverage allows traders to amplify their profits potentially, albeit it also comes with increased risk. 

Now, the Estimated Leverage Ratio is a metric that quantifies the extent to which traders in the market are using leverage. Thus, a decreased estimated leverage ratio implies that traders are reducing the amount of borrowed funds relative to their own capital in their positions. In other words, they are decreasing the level of leverage they are using, which can be seen as a sign of caution among traders against a potential market dump. 

The BTC market, which is currently on an uptrend, has witnessed similar puzzling events recently. On Friday, NewsBTC reported that Bitcoin whales sold 50,000 BTC worth $2.2 billion in the last week. All these movements are indicative of investors preparing for a possible bearish trend. 

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BTC Price

At the time of writing, Bitcoin trades around $43,626, with a 0.09% decline in the last day. Meanwhile, the token’s daily trading volume is significantly down by 29.63% and is currently valued at $17.22 billion. 

For now, there is no clear indicative danger to BTC’s bullish form. Albeit, there is a high level of anticipation in regard to a potential approval order of the spot Bitcoin ETF in January.

While many analysts predict a spot Bitcoin ETF will lead to increased demand for Bitcoin, others are fearful of turning the maiden cryptocurrency into a state-controlled financial asset. However, Bitget chief analyst Ryan Lee anticipates Bitcoin to trade between $32,000 – $50,000 depending on the effects of this investment fund.

bitcoin

BTC trading at $43,576 on the daily chart | Source: BTCUSD chart on Tradingview.com
Featured image from Reuters, chart from Tradingview
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Semilore Faleti
Semilore Faleti

Semilore Faleti

Semilore Faleti is a cryptocurrency writer specialized in the field of journalism and content creation. While he started out writing on several subjects, Semilore soon found a knack for cracking down on the complexities and intricacies in the intriguing world of blockchains and cryptocurrency.

Read more

Semilore is drawn to the efficiency of digital assets in terms of storing, and transferring value. He is a staunch advocate for the adoption of cryptocurrency as he believes it can improve the digitalization and transparency of the existing financial systems.

In two years of active crypto writing, Semilore has covered multiple aspects of the digital asset space including blockchains, decentralized finance (DeFi), staking, non-fungible tokens (NFT), regulations and network upgrades among others.

In his early years, Semilore honed his skills as a content writer, curating educational articles that catered to a wide audience. His pieces were particularly valuable for individuals new to the crypto space, offering insightful explanations that demystified the world of digital currencies.

Semilore also curated pieces for veteran crypto users ensuring they were up to date with the latest blockchains, decentralized applications and network updates. This foundation in educational writing has continued to inform his work, ensuring that his current work remains accessible, accurate and informative.

Currently at NewsBTC, Semilore is dedicated to reporting the latest news on cryptocurrency price action, on-chain developments and whale activity. He also covers the latest token analysis and price predictions by top market experts thus providing readers with potentially insightful and actionable information.

Through his meticulous research and engaging writing style, Semilore strives to establish himself as a trusted source in the crypto journalism field to inform and educate his audience on the latest trends and developments in the rapidly evolving world of digital assets.

Outside his work, Semilore possesses other passions like all individuals. He is a big music fan with an interest in almost every genre. He can be described as a “music nomad” always ready to listen to new artists and explore new trends.

Semilore Faleti is also a strong advocate for social justice, preaching fairness, inclusivity, and equity. He actively promotes the engagement of issues centred around systemic inequalities and all forms of discrimination.

He also promotes political participation by all persons at all levels. He believes active contribution to governmental systems and policies is the fastest and most effective way to bring about permanent positive change in any society.

In conclusion, Semilore Faleti exemplifies the convergence of expertise, passion, and advocacy in the world of crypto journalism. He is a rare individual whose work in documenting the evolution of cryptocurrency will remain relevant for years to come.

His dedication to demystifying digital assets and advocating for their adoption, combined with his commitment to social justice and political engagement, positions him as a dynamic and influential voice in the industry.

Whether through his meticulous reporting at NewsBTC or his fervent promotion of fairness and equity, Semilore continues to inform, educate, and inspire his audience, striving for a more transparent and inclusive financial future.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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