Bitcoin price failed to stay above $23,000 and dropped several hundred dollars following the failure. At this point, BTC is trading at a price level of $22,727.47, down 1.32% in 24 hours.

Most altcoins also followed suit as they traded lower in the last 24 hours, including popular cryptocurrencies such as Cardano, Solana, Polygon and others that were affected much more.

This month, Bitcoin managed to break through the $17,000 level at the beginning of the second week of the new year and since then it has not looked back. The breakout led to higher sentiment, and the asset surged to over $20,000 by the end of the same week.

However, the past 24 hours have brought little impact to the upside as the price of BTC has slumped to $22,400. It has recovered a bit at the moment, but it is still below $23,000. The decline comes amid reports that short-term investors have taken some profits.

Its market cap is still below $440 billion, while its dominance over alt coins has increased to 42.6%.

Binance Coin is struggling to stay above $300 as it has declined by 4.3%. Ripple, OKB, Litecoin and Tron fell by the same percentage.

More daily losses, especially from Cardano, Dogecoin, Polygon, Solana, Polkadot, and Shiba Inu. All these have dropped up to 7% in a day.

Based on a report by blockchain intelligence provider Glassnode that studies behavioral patterns in the chain, it found that short-term Bitcoin investors are starting to sell their BTC holdings to take profits.

However, the report states that long-term investors are still maintaining their holdings despite the recent surge in prices.