Bitcoin, the leading cryptocurrency in terms of market capitalization, is experiencing a setback after a series of gains. This recent retracement could potentially push the price back down to the $30,000 range. As of now, Bitcoin is trading at $40,950, reflecting a 2% loss in the past 24 hours. On a weekly basis, the cryptocurrency shows a 3% loss, mirroring the performance of other top 10 tokens in the market, except for Avalanche (AVAX).
Over the weekend, Bitcoin faced rejection at the critical resistance level of $43,500. It seems that a substantial player in the market strategically placed a “substantial resistance block” as the price dropped to its current levels. This selling order amounts to 1,562 BTC, equivalent to approximately $7 million. Despite the decrease in bullish momentum, there is still hope for Bitcoin’s recovery as the $40,000 zone could provide vital support for a potential bounce.
While some believe that the market can absorb the spike in selling pressure, crypto analytics firm Material Indicators suggests that Bitcoin is losing the support of major players. Over the weekend, players with selling orders above $1 million decided to liquidate their positions. Material Indicators has been warning traders about this possibility, asserting that the recent surge in price was a tactic to draw in liquidity from retail investors. Once smaller players entered the market, whales began to distribute or sell their coins, creating a potential local top for Bitcoin at $45,000.
Despite the current bearish sentiment, there is optimism for a turnaround in the market. Keith Alan, a senior analyst at Material Indicators, believes that at some point, the market will transition to accumulation. Lower prices will contribute to this shift in market sentiment. While it may appear bleak for bullish investors, Alan advises exercising patience and observing how things develop from here.
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Bitcoin is currently facing downward pressure as major players in the market continue to sell off their positions. The rejection at the critical resistance level of $43,500 and the presence of a substantial resistance block further exacerbate the situation. However, there is still hope for Bitcoin’s recovery as the $40,000 range could serve as a strong support for a potential bounce. It is crucial for investors to exercise patience and closely monitor market developments in order to make informed investment decisions.