Bitcoin, the leading cryptocurrency, is experiencing a slight decline in its recent gains. There are concerns that this could potentially lead to a more significant retracement, pushing the price back to the $30,000 mark. At the moment, Bitcoin is trading at $40,950 with a 2% loss in the past 24 hours. The weekly chart also shows a 3% loss, with most top 10 tokens by market cap recording a similar performance. However, Avalanche (AVAX) stands out as an exception.
Over the weekend, Bitcoin encountered a rejection from the critical resistance level at $43,500. An anonymous analyst believes that this rejection may be due to a substantial player placing a significant resistance block in the market. The selling order is estimated to be around 1,562 BTC, equivalent to approximately $7 million. Despite the decrease in bullish momentum, there is still a possibility of critical support around the $40,000 zone, which could potentially facilitate a bounce for Bitcoin.
Crypto analytics firm Material Indicators suggests that Bitcoin is losing the support of major players. The firm has observed that players with selling orders above $1 million have been “dumping” their positions over the weekend. This indicates that the recent bullish price action was potentially a strategy to absorb liquidity from retail investors. Once these smaller players entered the market, whales proceeded to “distribute” or sell their coins, causing the price to rally. Material Indicators has identified a potential local top for Bitcoin at $45,000.
Keith Alan, a senior analyst at Material Indicators, remains optimistic amid the current price action. He suggests that the market will eventually enter an accumulation phase, and prices moving lower will contribute to that shift. Although the situation may appear unfavorable for bulls at the moment, Alan does not expect a straightforward downward trajectory. He advises patience and monitoring the developments closely.
Bitcoin is currently facing selling pressure and potential resistance at the $43,500 level. There is a possibility of a further retracement that could bring the price back to the $30,000 mark. Material Indicators warns that major players are withdrawing their support for Bitcoin, and smaller retail investors may be left vulnerable. However, there is still hope for a potential bounce if critical support at the $40,000 zone holds. It is essential to conduct thorough research and exercise caution when making investment decisions, as investing in cryptocurrencies carries inherent risks.
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