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Ekta Mourya
FXStreet
Bitcoin price is range bound close to the psychologically important $40,000 level, nearly two weeks post Spot ETF approval by the Securities and Exchange Commission. Retail traders holding less than 1 BTC have shed their holdings, evident by the decline in Bitcoin wallets since October 2023.
Bitcoin price could plummet to the support zone between $38,304 and $38,957, in the event of further correction in the asset.
Also read: Bitcoin price eyes comeback above $40,000, traders unsure of where BTC is headed next
Bitcoin small wallets holding up to 1 BTC on a decline. Source: Santiment
Bitcoin price is in a tight range close to the psychologically important level of $40,000. BTC price is $40,132, at the time of writing. The asset yielded nearly 3% weekly losses for holders. The ETF approval likely catalyzed a correction in Bitcoin, ushering a decline in BTC from its 2024 peak of $48,989.
Bitcoin price is at risk of dipping to its support zone between $38,304 and $38,957 where 512,030 wallet addresses acquired 258,320 BTC. 
BTC/USDT 1-day chart
If Bitcoin price sees a daily candlestick close above resistance at $41,466, it is likely to invalidate the bearish thesis and send BTC towards its next key resistance at $43,074.
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
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Lido, a liquid staking service for cryptocurrencies like Ethereum, noted a surge in profit-taking activities by LDO holders. On-chain data reveals that whales are taking profits in LDO, consistently since December 25, 2023.
Bitcoin price is range bound close to the psychologically important $40,000 level, nearly two weeks post Spot ETF approval by the Securities and Exchange Commission. Retail traders holding less than 1 BTC have shed their holdings, evident by the decline in Bitcoin wallets since October 2023.
Ethereum transaction volume noted a surge on January 25, according to Santiment data. This increase in transactions indicates that there was a large volume exchange of Ether between market participants on exchange platforms.
Bitcoin price has been on a steep decline since January 11, when spot BTC exchange-traded funds (ETFs) started trading. The load-shedding exercise was provoked by news of Grayscale Bitcoin Trust redemptions, but things could change soon, according to investment bank JPMorgan.
Bitcoin currently trades around $41,094 after dropping 4.60% on Thursday, putting an end to the $2,000 trading range. This move comes after Adam from GeeksLive noted that the volatility level of BTC dropped to a new low in a month.
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