The drop in Bitcoin price coincided with a significant supply zone where about 1.8 million addresses snapped up the largest crypto token by market capitalization.
According to IntoTheBlock data, crypto buyers acquired 730,000 Bitcoin (BTC) as the token fell into a demand channel in the $41,200 to $42,400 price range. One trader predicts that this latest move for the leading crypto coin could lead to a decline to lower levels due to buy-the-dip calls from bulls on social media.
The analyst, known by the
BTC could correct into the next supply zone between $37,500 and $38,700, where over a million addresses purchased 553,000 Bitcoin. Ali noted that this scenario will occur if selling pressure continues to increase due to BTC's sideways and falling price patterns.
#Bitcoin has fallen below a key supply zone between $41,200 and $42,400. In this area, 1.87 million addresses had accumulated 730,000 $BTC.
This downturn could prompt these holders to sell to cut losses.
As selling pressure increases, watch for a possible pullback… pic.twitter.com/aTX1RWarkb
— Ali (@ali_charts) December 18, 2023
At press time, Bitcoin was trading below its 2023 peak of $44,613 for the tenth consecutive day. The token is still up by double digits over the past 30 days, gaining more than 12% since around November 19, according to CoinMarketCap.
According to crypto.news, analysts said BTC needs to stay above $43,000 if the market hopes for a sustained recovery. Experts also pointed out that BTC will peak in December 2023 or January 2024, followed by a massive decline to allow markets to cool down.
While the price of BTC continues to be a major topic among crypto participants, the cost of transactions has also drawn interest thanks to a burgeoning token standard known as inscriptions or atomic numbers.
The ordinal waves have reportedly pushed BTC gas fees to a record high – plus such transactions have boosted on-chain activity on other blockchains such as Avalanche and Arbitrum.
Bitcoin price on December 18th | Source: TradingView
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.