Bears Pulling BTC Down? Bitcoin Struggles Crossing $43K

• Bitcoin trading volume is down 19% in the past 24H.
• BTC  Daily chart signals tentative bullish trend; RSI neutral at 59.

Bitcoin, the leading cryptocurrency by market capitalization, has seen recent price fluctuations, oscillating between notable highs and moderate declines. After reaching a peak above $44,500 earlier this month, BTC has settled around $42,000, experiencing a 1% decline today.

The anticipation surrounding a potential U.S. spot Bitcoin ETF launch has boosted recent market optimism. This sentiment grew stronger after BlackRock signalled acceptance of Bitcoin redemptions, instilling confidence among investors. As a result, Bitcoin briefly surged above $43,000 yesterday after almost six days but currently faces bearish pressure.

A noteworthy trend in Bitcoin wallet behaviour has emerged. The lower-tier wallets, holding 0-1 coins, have consistently accumulated assets since October, amassing around 1.42 million BTC. Conversely, mid-tier wallets have slightly reduced holdings, now at approximately 6.57 million BTC.

However, amidst these shifts, the number of active Bitcoin addresses has declined from about 4.9 million to 4.1 million, possibly influenced by recent price movements.

Also, Bitcoin’s trading volume experienced a brief decline to $14 billion before bouncing back around December 18th, reflecting fluctuating investor engagement aligned with market trends.

Bitcoin Bulls To Reign?

Analyzing BTC’s price movements reveals a delicate situation. The daily chart indicates a tentative bullish trend, with the 9-day exponential moving average (EMA) positioned at $42,329, below the current trading price. The daily relative strength index (RSI) suggests a neutral condition, hovering at 59.

BTC Price Chart, Source: TradingView

Should the price surpass $43,380, it may likely surge further to test the resistance level at $47,200. Conversely, if the price falls below $41,830, it could test the support area around $40,800.