Journalist
Posted:
- BTC has a strong support level near the $40,000 level
- If the price of the coin falls below that level, it could fall as low as $38,000
Bitcoin [BTC] has somewhat managed to stabilize its price after a quick price correction a day ago. However, when considering future prospects, it is important to look for the worst. If the king of cryptos registers another price correction, its value could drop to $38,000.
The price of Bitcoin is stabilizing
Bitcoin caught investors’ attention when it recently breached the $40,000 mark again. However, this uptrend did not last long as BTC soon recorded a correction on the charts. Here it is worth noting that after a period of volatility, the cryptocurrencies are down only 1% in the last 24 hours.
At the time of writing, Bitcoin was trade at $41,814.05 with a market cap of over $818 billion. Ali, a popular crypto analyst, recently pointed out that there are opportunities BTC falling below $40,000 towards $38,000 as the price correction begins in earnest again.
For a deeper correction #Bitcoin finds solid support between $37,150 and $38,360. This zone is supported by 1.52 million addresses with 534,000 addresses $BTC.
Also watch out for two walls of resistance that are blocking the #BTC remote uptrend: one at $43,850 and one at $46,400. pic.twitter.com/NGm1XpMOLf
— Ali (@ali_charts) December 11, 2023
To validate the same, AMBCrypto took a closer look at the coin’s on-chain metrics to better understand whether investors should expect BTC to drop to that level before the end of this year.
There are many expectations at BTC
According to our analysis, BTC has built a huge resistance level around the $44,000 level, mainly because liquidation levels increased during that period. However, there is also a strong support level at $40,000, a level that is clearly visible from the fluorescent lines at the bottom of the chart.
Source: Hyblock Capital
AMBCrypto then looked at BTC market sentiment to check the possibility that BTC would not be able to recover from the support level near $40,000. We found that selling pressure on the currency was high as the exchange rate reserve increased.
From CryptoQuantBitcoin’s aSORP was also in the red, meaning more investors sold at a profit. In the middle of a bull market, this could indicate a market top.
Furthermore, both the Coinbase premium and the Korea premium were in the red, clearly indicating that selling sentiment among US and Korean investors is now relatively high. When selling pressure increases, this increases the chance of a price drop.
Source: CryptoQuant
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Finally, in the price charts, BTC‘s MACD showed a bearish crossover. Moreover, the Money Flow Index (RSI) also registered a downward trend, increasing the chances of a price drop in the coming days.
Source: TradingView