Bitcoin Bull Run In Jeopardy? Analyst Finds Market Top Signals With BTC At $40,000
December 18 2023 - 2:30PM
NEWSBTC
Bitcoin is walking back on some of its gains over the past few
days. The number one cryptocurrency by market cap might be on the
verge of a more significant retracement, which could push it back
to the $30,000 zone. Related Reading: Internet Computer Loses Grip
On $10, But Still Inks 82% Rally – Details As of this writing,
Bitcoin (BTC) trades at $40,950 with a 2% loss in the past 24
hours. On the weekly chart, the cryptocurrency records a 3% loss,
with all tokens in the top 10 by market recording a similar
performance, except for Avalanche (AVAX). Bitcoin Hits Local Top?
Bull Run Slows Down Over the weekend, Bitcoin was rejected from the
critical resistance level at $43,500. According to a pseudonym
analyst, as the BTC price dropped to its current levels, a
significant player placed a “substantial resistance block.” The
chart below shows that the selling order is 1,562 BTC, or around $7
million. It also shows thick support for BTC as the bullish
momentum fades. In other words, Bitcoin might slow down, but the
area around $40,000 could provide critical support for a potential
bounce. The analyst stated on the increasing selling orders
appearing on the books: Massive resistance added on BTC Binance
Spot. This is what a top looks like. A substantial resistance block
of 1562 BTC has just arrived in the order books. BTC Whales On The
Move While many believe that the market can absorb the spike in
selling pressure, crypto analytics firm Material Indicators showed
that Bitcoin is losing the support of major players. Over the
weekend, players selling orders above $1 million “dumped” their
positions. The firm has been warning traders about this possibility
by arguing that the recent bullish price action was a strategy to
suck in liquidity from retail investors. Once this smaller player
jumped in, whales began to “distribute” or sell their coins into
the rally. Related Reading: Solana Threatens To Unseat Ethereum In
Trade Volume With $1 Billion In Single Day In that sense, the firm
set a potential local top for BTC at $45,000. Keith Alan, one of
Material Indicators senior analysts, stated the following on the
current price action: The good news is, at some point the market
does flip to accumulation, and prices moving lower will get us to
that point. As bad as it looks for bulls right now, I’m not
expecting a straight line down. Time to exercise some patience and
see how things develop from here. Cover image from Unsplash, chart
from Tradingview
Internet Computer (COIN:ICPUSD)
Historical Stock Chart
From May 2024 to Jun 2024
Internet Computer (COIN:ICPUSD)
Historical Stock Chart
From Jun 2023 to Jun 2024