In a recent turn of events, on-chain data has unveiled a surge in profitable holdings of Bitcoin, raising concerns about potential profit-booking in the crypto market. According to Santiment’s latest data, Bitcoin’s ratio of supply to profit has spiked to 89%, signaling a cautionary stance among investors as the new year approaches.
Analysts suggest that a sweet spot for further price escalation lies within the 40-70% range for this metric. Meanwhile, alternative assets such as MATIC (Polygon) and LTC (Litecoin) are seen as more favorably positioned within an opportunity zone.
Bitcoin ETF Impact & Anticipation
The current market conditions depict Bitcoin at a value of $43,810, boasting a 24-hour trading volume of $37.24 billion. Bitcoin’s market capitalization stands at $857.71 billion, with a market dominance of 50.92%. In the past 24 hours, BTC witnessed a slight decline of -0.42%. The dip coincides with reports of discussions held by the US Securities and Exchange Commission (SEC) with Bitcoin ETF filers on Thursday.
Despite the slight dip, the Bitcoin fear and greed index indicates extreme greed at the current price levels, urging investors to exercise caution. Anticipation is building around the potential early approval of the Bitcoin ETF, with some analysts expressing bullish sentiments, expecting the BTC price to touch $50,000 by the expected approval date of January 10.
MATIC & FTM Bullish Potential
The altcoin market, on the other hand, continues to make robust moves, presenting value-unlocking opportunities even in small-cap altcoins. Two notable altcoins catching investors’ attention are Polygon (MATIC) and Fantom (FTM).
Cryptocurrency analyst Ali Martinez highlights a significant resistance zone for Polygon (MATIC) between $0.79 and $0.84. Approximately 39,000 addresses are holding a substantial amount of over 4.24 billion MATIC tokens within this zone.
Breaking through this resistance level, according to Martinez, is crucial for MATIC to pave the way for potential new highs. At present, MATIC is trading at $0.8663, reflecting a 7.24% increase with a market cap of $ 6.94B billion.
Turning attention to Fantom (FTM), Martinez notes a bullish shift as the coin trades above $0.47, indicating a lack of major resistance until the $0.65 mark. Martinez advises market participants to remain optimistic about a robust rally in FTM’s price as long as it maintains its position above this critical level.
Related Reading | What About DOGE? Elon Musk Throws Curveball