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Posted:
- BTC fell more than 2% in the past 24 hours as miners sold their holdings.
- Most market indicators also remained bearish on the king of cryptos.
Bitcoins [BTC] The price has witnessed another correction as the daily chart turned red. This happened while the price of the king of crypto was moving in a parallel channel. If the downturn continues, BTC’s price could soon drop to the $40,000 mark before rebounding.
Bitcoin is bleeding again
After a month-long steady price movement, the king of cryptos fell victim to another correction in the recent past. According to CoinMarketCapThe price of BTC has fallen by more than 2% in the last 24 hours alone.
At the time of writing, it was trading at $42,332.07 with a market cap of over $828 billion. As the price of the coin fell, Ali, a popular crypto analyst, pointed out that BTC was moving in a parallel channel on the 4-hour chart.
In the 4-hour chart it is #Bitcoin is consolidating within a parallel channel, which puts all the focus on the support at $42,400.
Could see a continued decline below $BTC go to $40,700. On the other hand, a recovery from here could set the stage for a rebound towards $44,400. pic.twitter.com/P4f6C97cvL
— Ali (@ali_charts) December 26, 2023
According to the tweet, BTC’s value was at a key support level of $42,400. With the currency failing to test that support level and falling below it, the possibility of a continued downturn seemed likely.
If the data is to be believed, Bitcoin could fall to $40,000 again before the end of the year. Nevertheless, the great thing was that after touching $40,000, BTC could initiate a bull rally that could take it to $44,000.
Is a further downward trend possible?
To check the viability of BTC at $40,000, AMBCrypto took a closer look at Bitcoin’s on-chain metrics. Our analysis showed that BTC‘s aSORP turned red, which meant more investors were selling at a profit.
Source: CryptoQuant
According to our look at CryptoQuant’s factsBTC’s Miners Position Index (MPI) also marked the same red color. This clearly meant that miners were selling more assets compared to the annual average, which had the potential to push the price of the coin further down.
However, it was interesting to see that even though the MPI and the aSORP were red, both Bitcoin’s exchange reserve and exchange grid remained green.
When these metrics turn green, it suggests that buying pressure on a token is high, which can be seen as a bullish signal.
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2023-24
AMBCrypto then looked into it BTC‘s daily chart and found that the sellers led the market as the MACD showed a bearish crossover.
Bitcoin’s Relative Strength Index (RSI) registered a decline, indicating a continued price decline. Nevertheless, the Chaikin Money Flow (CMF) remained bullish as it moved north.
Source: TradingView
