ARE BTC LONGS WAITING FOR SUB-$40K? 5 THINGS TO KNOW IN BITCOIN THIS WEEK

Bitcoin, the king of cryptocurrencies, has had a somewhat rocky start to the new year, leaving many investors and traders on edge. BTC price strength thus held its own, keeping $40,000 as support despite increasing conviction that lower levels would result. Related: Are BTC longs waiting for sub-$40K? 5 things to know in Bitcoin this week. These focused on the mid-$30,000 zone, with various popular traders identifying it as an opportunity to go long BTC next.After hitting two-year highs, BTC price action has struggled, putting bulls on the defensive.The crucial $40,000 support level is looming ever closer, sparking intense debate about where Bitcoin is headed next.A key question on everyone's mind is: are BTC longs waiting for sub-$40,000? This week's analysis delves into the current market landscape, providing insights from popular market participants and examining the factors influencing Bitcoin's price. Cryptocurrency Longs Shorts Ratio refer to the ratio of active buying volume to active selling volume on futures contract exchanges, which can reflect the market's sentiment of long or short positions. You can check the bitcoin longs/shorts ratios for Binance, Bitmex, OKX, Bybit, Bitget, deribit and Bitfinex. We provide real-time data for Bitcoin contract long vs short ratio, exchange contractFrom analyzing Bitcoin's recent disappointing weekly close to understanding the significance of long/short ratios, we'll explore the key elements that are shaping Bitcoin's trajectory.We'll also look at potential opportunities for accumulating BTC at lower levels, as some traders are eyeing the mid-$30,000 range. Bitcoin traders eye sub-$40,000 levels for longs Another disappointing weekly close for Bitcoin this time, its lowest in over a month, data from Cointelegraph Markets Pro and TradingView shows.Plus, we'll cover the anticipation surrounding the approval of the first spot price Bitcoin ETF in the United States. Cointelegraph takes a closer look at the current landscape with insights from popular market participants into where Bitcoin might be headed. Bitcoin traders eye sub-$40,000 levels for longs. Another disappointing weekly close for Bitcoin this time, its lowest in over a month, data from Cointelegraph Markets Pro and TradingView shows.Let's dive into the five crucial things you need to know about Bitcoin this week.

1.Bitcoin's Disappointing Weekly Close and Looming $40K Support

Bitcoin's recent performance has been less than stellar, marked by another disappointing weekly close. BTC price eyes $40K amid record hash rate 5 things to know in Bitcoin this week . While Bitcoin is still waiting for U.S. regulators to greenlight the country s first spot price exchangeData from Cointelegraph Markets Pro and TradingView reveals that this was Bitcoin's lowest weekly close in over a month. Bitcoin (BTC) starts the fourth week of January in a precarious state as doubts surface over the cryptocurrency bull market. BTC price action continues to struggle after hitting two-year highs bulls are on the back seat, and $40,000 support is looming ever closer.This decline has intensified concerns about the strength of the current bull market and has brought the crucial $40,000 support level into sharp focus.The inability to maintain higher levels has fueled speculation that further downside is possible.

The $40,000 level is considered a critical psychological and technical support. Bitcoin (BTC) starts Christmas week at a bearish crossroads as BTC price support thins and forecasters see a chance of a major dip. ・Those looking to gain long-term BTC exposure get theirIf Bitcoin breaks below this level, it could trigger a wave of sell-offs and potentially lead to further price declines.Conversely, if Bitcoin can hold above $40,000, it would signal continued strength and potentially pave the way for a rebound.The coming days will be crucial in determining which direction Bitcoin takes.

2.The Allure of Sub-$40,000: Where are the Longs Lining Up?

While some investors are expressing caution, others are eagerly anticipating a potential dip below $40,000 as an opportunity to accumulate more Bitcoin.Several popular traders have identified the mid-$30,000 range as a particularly attractive zone for entering long positions.This suggests that there is significant demand waiting on the sidelines, ready to buy Bitcoin if it reaches these lower levels.

This strategy of ""buying the dip"" is a common practice in the cryptocurrency market.Traders believe that temporary price declines offer a chance to purchase assets at a discount, anticipating a subsequent rebound.The level of interest in the sub-$40,000 range indicates that many investors remain bullish on Bitcoin's long-term prospects, despite the recent price weakness.

Why are traders targeting the mid-$30,000 range?

The mid-$30,000 range could represent a confluence of technical support levels and potential buying interest.It's possible that this area aligns with previous price consolidation zones or key Fibonacci retracement levels, making it an attractive entry point for long positions.Furthermore, the psychological impact of a significant price drop could entice sidelined investors to enter the market.

3.Decoding Bitcoin Longs/Shorts Ratio: Gauging Market Sentiment

Understanding the Bitcoin Longs/Shorts Ratio is crucial for gauging overall market sentiment.This ratio reflects the balance between active buying (long) and selling (short) volume on futures contract exchanges.A higher ratio indicates that more traders are betting on Bitcoin's price to rise, while a lower ratio suggests that more traders are anticipating a decline.

You can monitor the Bitcoin Longs/Shorts Ratios on various exchanges, including Binance, Bitmex, OKX, Bybit, Bitget, Deribit, and Bitfinex.These real-time data points provide valuable insights into the prevailing market mood and can help traders make more informed decisions.For example, if the ratio is heavily skewed towards longs, it could signal potential overbought conditions and a possible price correction.

Example: Imagine the Longs/Shorts ratio on Binance is 2:1.This indicates that for every one trader shorting Bitcoin, there are two traders longing it.This suggests a bullish sentiment prevalent among Binance traders.

• High Ratio (More Longs): Potentially bullish, but can also indicate overextended positions vulnerable to liquidation.
• Low Ratio (More Shorts): Potentially bearish, but can also signal oversold conditions where a bounce is likely.
• Balanced Ratio: Suggests uncertainty and consolidation in the market.

4.The ETF Factor: Waiting for U.S.Regulatory Approval

The potential approval of the first spot price Bitcoin ETF (Exchange Traded Fund) in the United States remains a significant catalyst for the cryptocurrency market.While Bitcoin is currently waiting for U.S. regulators to give the green light, the anticipation surrounding this event continues to build.An ETF would provide traditional investors with a more accessible and regulated way to gain exposure to Bitcoin, potentially unlocking a massive influx of capital into the market.

The SEC's (Securities and Exchange Commission) decision on these applications is closely watched, as it could have a profound impact on Bitcoin's price and adoption.Positive news regarding the ETF approval process could trigger a significant rally, while rejection could lead to disappointment and a potential price correction.

What impact could a Bitcoin ETF have?

A Bitcoin ETF could:

• Increase institutional investment in Bitcoin.
• Provide easier access to Bitcoin for retail investors.
• Legitimize Bitcoin as an asset class.
• Reduce volatility through increased liquidity.

5.Hash Rate at Record Highs: A Sign of Network Strength

Despite the recent price volatility, Bitcoin's network fundamentals remain strong.The hash rate, a measure of the computational power dedicated to mining Bitcoin, is currently at record highs.This indicates that the Bitcoin network is more secure and resilient than ever before.

A high hash rate makes it more difficult and expensive to attack the Bitcoin network, providing increased security for transactions and overall network stability.This reinforces the long-term value proposition of Bitcoin as a decentralized and secure store of value.

Why is the Hash Rate Important? The hash rate essentially signifies the processing power being used to maintain the Bitcoin network.A higher hash rate implies:

1. Increased Security: More computational power makes it harder to execute a 51% attack, where a single entity controls the majority of the network's hashing power.
2. Network Health: A growing hash rate indicates miners' confidence in the network's profitability and future prospects.
3. Transaction Speed: While not directly correlated, a robust network can generally handle a higher volume of transactions more efficiently.

Key Takeaways and Looking Ahead

This week in Bitcoin presents a mixed bag of signals.While the recent price weakness and looming $40,000 support level have sparked concerns, the potential for accumulation at lower levels, the anticipation of a Bitcoin ETF, and the strength of the network fundamentals offer reasons for optimism.Understanding the Bitcoin Longs/Shorts Ratio can provide valuable insights into the prevailing market sentiment.

Here's a quick recap of the five key things to remember:

• Bitcoin's recent weekly close was disappointing, putting pressure on the $40,000 support level.
• Many traders are eyeing the sub-$40,000 range, particularly the mid-$30,000s, as an opportunity to go long.
• The Bitcoin Longs/Shorts Ratio is a useful tool for gauging market sentiment.
• The potential approval of a spot price Bitcoin ETF in the U.S. remains a significant catalyst.
• Bitcoin's hash rate is at record highs, indicating strong network security.

Are BTC longs waiting for sub-$40K? It's certainly a possibility, and the coming days will provide more clarity.Investors should closely monitor price action, analyze market sentiment, and stay informed about regulatory developments to make informed decisions.Consider your risk tolerance and investment goals before making any decisions.

Ultimately, the future of Bitcoin remains uncertain, but by understanding the key factors influencing its price, investors can navigate the market with greater confidence.Keep learning, stay informed, and trade responsibly.