Bitcoin has shown signs of retracement in recent days, potentially indicating a return to the $30,000 mark. With a 2% loss within the past 24 hours, the cryptocurrency is currently trading at $40,950. On a weekly scale, Bitcoin records a 3% loss, with other top 10 tokens facing similar performance, excluding Avalanche (AVAX).
Over the weekend, Bitcoin faced rejection at the critical resistance level of $43,500. An analyst, operating under a pseudonym, reveals that a significant player has established a “substantial resistance block” as the BTC price dropped to its current levels. This selling order amounts to 1,562 BTC, equaling approximately $7 million. Despite the bearish momentum, the area around $40,000 may provide crucial support for a potential rebound. The thick support on the charts shows resilience in Bitcoin’s price, providing a glimmer of hope for traders.
Crypto analytics firm, Material Indicators, warns that Bitcoin is losing the support of major players. Players with selling orders exceeding $1 million have swiftly “dumped” their positions. The firm argues that the recent bullish price action was a strategy employed to absorb liquidity from retail investors. Once smaller players became involved, whales began selling their coins during the rally, ultimately leading to a potential local top for BTC at $45,000.
Keith Alan, a senior analyst at Material Indicators, acknowledges the challenging market conditions for bulls but remains optimistic. He expects a market shift to accumulation at some point, where lower prices will pave the way for a rebound. While the road ahead appears turbulent, exercising patience and monitoring developments is essential in navigating the market.
As a disclaimer, it is essential to note that the article is for educational purposes only. The opinions expressed are not representative of NewsBTC’s stance on buying, selling, or holding investments. Every investment carries inherent risks, and individuals are urged to conduct their own thorough research before making any investment decisions. Relying on the information provided here should be done entirely at one’s own risk.
Bitcoin is currently facing the possibility of a significant retracement, potentially dropping to the $30,000 zone. While it has experienced a 2% loss within the past 24 hours and a 3% loss on the weekly chart, there is still hope that the area around $40,000 will provide critical support for a bounce-back. Major players in the market are displaying increased selling pressure, causing concern among analysts. However, there are indications that Bitcoin may eventually transition to an accumulation phase, making lower prices a potential catalyst for a market shift. It is crucial for investors to exercise patience and conduct thorough research before making any investment decisions, as the cryptocurrency market is inherently volatile.