- The cryptocurrency market surprised traders this Monday, providing them with a rollercoaster of challenging price movements to digest.
- In the case of a reversal, it was mentioned that Bitcoin would encounter several obstacles before continuing its upward trend.
- Bitcoin displayed bearish signs with a 10% price drop but recovered from the $40,000 support level.
What levels should be carefully monitored during the correction in Bitcoin’s price? These levels could be crucial for determining the direction of Bitcoin!
Critical Levels in the Correction of Bitcoin Price
The cryptocurrency market surprised traders this Monday, providing them with a rollercoaster of challenging price movements to digest. Sharp volatility triggered approximately $400 million in liquidations in the crypto futures market, affecting leveraged long and short positions equally. A recognized trader following the correction on Monday warned users that a more profound correction would find a “strong support zone” between $37,150 and $38,360.
In the case of a reversal, it was mentioned that Bitcoin would encounter several obstacles before continuing its upward trend. The trader stated, “Watch out for two resistance walls that could stop the BTC rally: one at $43,850, and the other at $46,400.”
Similarly, COINOTAG reported that BTC needed to successfully hold the $40,000 level to trigger a turnaround and potentially push the market toward the next significant resistance level at $48,000. However, a bearish breakout could lead to further declines, reaching $38,000 and potentially $31,000 in the worst-case scenario.
Can BTC Retest $30,000?
Bitcoin showed bearish signs with a 10% price drop but recovered from the $40,000 support level. As mentioned, analysts and traders closely monitor key support levels to evaluate the short-term price movement of Bitcoin.
Interestingly, the amount of money entering Bitcoin reached levels unseen since the peak of the last cycle, occurring only five times in history. According to popular BTC trader CryptoCon, the Money Flow Index reaching 91.57 indicates sustainable momentum and could potentially drive Bitcoin to higher levels.
Similarly, on-chain data indicates that the current supply of Bitcoin is at historically low levels, largely reflecting an increase in HODLer accumulation, with a significant portion coming from institutional investors.
As reported by COINOTAG, institutions typically favor Bitcoin, and BTC assets doubled in the first three quarters of 2023, reaching 50% of portfolios in September. This was driven by positive market sentiment, expectations of regulatory developments, and the potential approval of a Bitcoin ETF.
