- Bitcoin has risen by more than 13% in the past seven days.
- Selling pressure on the royal coin increased.
After a long wait, Bitcoin [BTC] It finally managed to break above $40,000 for the first time since April. This news sparked excitement in the crypto community.
This episode not only reflected BTC’s potential, but also caused the coin to reach a previous resistance level against its new support.
Bitcoin finally goes above $40,000
Although BTC also showed a bull rally a few weeks ago, it failed to surprise investors. But things changed in the recent past when its value exceeded $40,000.
According to CoinMarketCapBTC has risen more than 13% in the past seven days. At the time of writing, it was trading at $41,709.36 with a market cap of over $815 billion.
Trading volume has also surged over the past 24 hours, acting as a basis for the price increase. Thanks to the recent bull rally BTCThe country’s market dominance also increased.
When AMBCrypto checked Coinstats data, we found that BTC dominance reached 51.03% at the time of writing. The same figure fell to 49.1% in November 2023.
Source: Coinstats
Bitcoin: New Key Levels to Watch
As the price of BTC rose, crypto analyst Ali via X (formerly Twitter) pointed out some key levels for the king coin. Notably, the key resistance area for BTC was at $47,360.
So, BTC’s new support level can be expected somewhere near $37,000.
#Bitcoin | The main resistance area for $BTC is at $47,360, while $37,000 has now become a major support zone! pic.twitter.com/0OpN2ZMo9e
— Ali (@ali_charts) December 4, 2023
AMBCrypto then looked at Bitcoin liquidation levels to confirm the above statement. We found that BTC liquidation increased significantly, almost $37,000 (fluorescent lines).
Ttherefore, the possibility of $37,000 being BTC’s new support seemed high. Moreover, if according to the data of Hyblock Capital, BTC‘s price did not rise above the $42,500 mark.
Therefore, the king of cryptos must first surpass that target to continue his bull rally.
Source: Hyblock Capital
Will BTC Cross $42,500 Soon?
AMBCrypto then looked at the king of crypto’s on-chain metrics to see the viability of BTC crossing $42,500. The coin’s MVRV ratio has increased significantly over the past week, which was a positive signal.
Another positive metric was the number of transactions, which also increased last week.
Source: Santiment
Additionally, CryptoQuant’s facts revealed that BTC’s Binary CDD was in the green at the time of writing. This meant that long-term bond movements over the past seven days were lower than average.
Derivatives investors also bought BTC at the higher price, increasing the likelihood of a sustained price increase.
Source: CryptoQuant
Despite the recent rise in the price of the coin, BTC miners made a different choice. Miners have always played an important role in shaping BTC’s price action, and in this case they had started selling.
AMBCrypto’s check of Glassnode’s data showed that balances in miner wallets had been declining for more than a month. At the time of writing, miners’ balance stood at 1.8 million BTC.
Furthermore, miners sold their assets in a moderate range compared to their annual average, which was evident in the Miners Position Index (MPI).
Source: Glassnode
As miners sold, it was imperative to look at the broader market to understand the sentiment around BTC.
According to data analyzed by AMBCrypto via CryptoQuant, net deposits of BTC on exchanges were high compared to the average of the past seven days, meaning selling pressure on the coin was high.
Worryingly, Bitcoin’s supply on exchanges has recently reversed its supply off exchanges. This meant that investors sold BTC when the price was high to get out for a profit.
Source: Santiment
Should investors expect a share price drop?
In addition to Bitcoin’s supply on the exchanges, another bearish measure was the coin’s fear and greed index. At the time of writing, the index had a value of 75, indicating ‘greed’ in the market.
When the index reaches the greed position, the chance of a price correction becomes likely.
Source: Alternative
That’s why AMBCrypto checked it BTC‘s daily chart to better understand whether BTC will fall to $37,000 and test the support level in the coming days.
BTC’s Chaikin Money Flow (CMF) recorded a sharp decline, which was a development in favor of the sellers.
Read Bitcoins [BTC] Price prediction 2023-24
Furthermore, both Bitcoin’s Money Flow Index (MFI) and Relative Strength Index (RSI) were in overbought zones, increasing the likelihood of a price drop.
Nevertheless, the MACD remained in favor of the buyers as it showed a bullish edge in the market.
Source: TradingView