Bitcoin (BTC) Price Remains Volatile After Reaching a High of Nearly $84,000

CoinGecko data shows Bitcoin has gained 0.6% in the last 24 hours, despite being down 9.2% over the past week.

Bitcoin price movements remain volatile as the crypto fluctuated within a broad range over the past 24 hours. The crypto reached a high of nearly $84,000 before stabilizing around $83,000.

As market reactions continue to reflect ongoing macroeconomic factors and on-chain developments, they're likely to contribute to more sharp price swings.

Bitcoin Price Shows Slight Gain Despite Recent Volatility

CoinGecko data shows Bitcoin has gained 0.6% in the last 24 hours, despite being down 9.2% over the past week. The monthly trend reflects a 15.6% decline, highlighting ongoing corrections, while the yearly outlook remains positive with a 13.7% gain.

These fluctuations coincide with increasing on-chain activity and changing wallet dynamics.

Santiment data indicates Bitcoin’s non-empty wallets are nearing an all-time high. Wallets holding more than zero BTC have reached 54.71 million, just 0.018% below the record 54.72 million set on January 19.

This growth signals continued adoption, even as Bitcoin experiences heightened volatility following its all-time high of $109,000.

Santiment attributes the wallet expansion to network growth and larger holders splitting their assets into smaller wallets. Meanwhile, Ethereum (ETH) and Tether (USDT) wallets are also rising, while XRP wallet numbers remain stable.

Bitcoin Still Shows Profitability As More Holders Enter In The Green

Despite increasing retail participation, whale and shark activity has remained unchanged.

The crypto analytics platform noted that while rising retail interest can sometimes signal bearish conditions, larger holders have neither increased nor decreased their positions.

Data from IntoTheBlock confirms this trend, with the Whales 30-Day Change indicator standing at 0.00%, reflecting a neutral stance among large investors.

On the other hand, Bitcoin’s financial position shows that 75.73% of holders are currently profitable. These investors hold approximately 15.04 million BTC valued at $1.25 trillion, demonstrating strong market confidence.

Conversely, 21.81% of holders are at a loss, owning 4.33 million BTC worth $359.33 billion. These unprofitable addresses mainly acquired BTC at prices above $84,667. Additionally, 2.46% of holders, with 489.15k BTC worth $40.59 billion, are at break-even, indicating their purchase price aligns with the current market rate.

Bitcoin’s ability to sustain levels above $83,000 aligns with the high percentage of profitable holders. The whales have been accumulating BTC below the $80,000 price level, which confirms it as an accumulation region.

If Bitcoin’s price fails to rise above $84,667, there is a possibility that it will be rejected by bears who sell at higher prices.

Bitcoin Price Technical Indicators Suggest Potential Breakout

Elsewhere, technical analysts have highlighted that signs are pointing to an upward price move. From the chart shared by Titan of Crypto, a RSI bullish divergence can be observed.

It typically emerges when the price makes lower lows while the RSI makes higher lows.

Examining Bitcoin price history, there are two bullish divergences that occurred in 2024, marked by the reversal of the relative strength index (RSI).

In early July 2024, the divergence led to a $12,867.57 increase in price, surging by 23.06%. A similar movement from September to November resulted in Bitcoin gaining $52,274.50 with an impressive 96.96% increase. The analyst mentions that the recent RSI divergence might lead Bitcoin to levels near $110,000.

Another chart compiled by Ali Martinez also locates Bitcoin in an ascending triangle which is a bullish continuation pattern. This formation features higher lows that are moving towards the resistance level at $84,000.

If this level is surpassed, Bitcoin will potentially increase by 9%, pushing the price above $91,950.