If this is true, Bitcoin could fall to $40,000 again 

Journalist

Posted: December 27, 2023

• BTC was down by over 2% within the final 24 hours whereas miners bought their holdings.
• Most market indicators additionally remained bearish on the king of cryptos.

Bitcoin’s [BTC] worth has as soon as once more witnessed a correction as its each day chart turned purple. This occurred whereas the king of crypto’s worth was transferring in a parallel channel. If the downturn continues, BTC’s worth may quickly plummet to the $40,000 mark earlier than rebounding. 

Bitcoin bleeds once more

After a month-long regular worth motion, the king of cryptos as soon as once more fell sufferer to a correction within the latest previous. In response to CoinMarketCap, BTC’s worth was down by greater than 2% within the final 24 hours alone.

On the time of writing, it was buying and selling at $42,332.07 with a market capitalization of over $828 billion. Whereas the coin’s worth dropped, Ali, a well-liked crypto analyst, identified that BTC was transferring in a parallel channel on its 4-hour chart.

Within the 4-hour chart, #Bitcoin is consolidating inside a parallel channel, which places all of the give attention to the $42,400 help.

A sustained drop beneath may see $BTC head to $40,700. On the flip facet, a rebound from right here may set the stage for an upswing towards $44,400. pic.twitter.com/P4f6C97cvL

— Ali (@ali_charts) December 26, 2023

As per the tweet, BTC’s worth was resting at a key help stage on the $42,400 mark. Now that the coin failed to check that help stage and fell beneath it, the potential of a continued downturn appeared seemingly.

In actual fact, if the info is to be believed, Bitcoin may plummet to $40,000 once more earlier than the yr ends. Nonetheless, the great half was that after touching $40,000, BTC may provoke a bull rally, permitting it to hit $44,000.

Is an extra downtrend doable?

To verify the viability of BTC touching $40,000, AMBCrypto had a better take a look at Bitcoin’s on-chain metrics. Our evaluation discovered that BTC’s aSORP turned purple, that means that extra buyers had been promoting at earnings.

Supply: CryptoQuant

As per our take a look at CryptoQuant’s data, BTC’s Miners Place Index (MPI) additionally flagged the identical purple colour. This clearly meant that miners had been promoting extra holdings in comparison with its one-year common, which had the potential to push the coin’s worth additional down.

Nonetheless, it was attention-grabbing to see that regardless of the MPI and aSORP being purple, each Bitcoin’s alternate reserve and alternate netflow remained inexperienced.

At any time when these metrics flip inexperienced, it suggests that purchasing stress on a token is excessive, which might be perceived as a bullish sign. 

Supply: CryptoQuant

Learn Bitcoin’s [BTC] Value Prediction 2023-24

AMBCrypto then had a take a look at BTC’s each day chart and located that the sellers had been main the market as its MACD displayed a bearish crossover.

Bitcoin’s Relative Energy Index (RSI) registered a downtick, suggesting a continued worth decline. Nonetheless, the Chaikin Cash Movement (CMF) remained optimistic because it moved northward.

Supply: TradingView