Bitcoin, the first and largest cryptocurrency, is at a critical juncture as key metrics signal an impending shift in momentum and profitability.
Analysis of Key Indicators
According to Glassnode, Bitcoin's STH-SOPR is currently testing the breakeven level of 1.0. Historically, breaking above this level confirms a shift in momentum, while failure to do so often leads to renewed selling pressure. The last attempt in early January was successful, but short-lived.
Current State of the Crypto Market
At press time, Bitcoin was down 0.15% in the last 24 hours to $95,809, extending its sell-off from Sunday. The broader crypto market remains down amid continued profit-taking following the Bybit hack and macroeconomic concerns.
Expectations for Economic Data
Investors are expecting a packed week of economic data, including the GDP growth rate data scheduled for Thursday, which will offer insights into how the U.S. economy performed in Q4, 2024. The most anticipated data for the week is the personal consumption expenditure index, releasing at the end of the week.
Given the current indicators and upcoming economic data, investors' attention is focused on the potential shift in Bitcoin's trend.
