BTC Price Crash Warns A 14% Drop If Sellers Break $40K

The post BTC Price Crash Warns A 14% Drop If Sellers Break $40K appeared first on Coinpedia Fintech News

The remarkable bull run in Bitcoin, starting from $26K in September 2023, finally takes a pullback after reaching the height of $49K. However, the momentum of the recent pullback threatens the prevailing uptrend in BTC price, and the 2024 bull run possibility is questioned. 

With two Bitcoin Spot ETFs reaching the $1 Billion AUM mark within a week, BTC price is struggling to hold off the selling pressure. The Spot ETF news is turning bearish because of the growing outflows in the GBTC trust. However, the alternative ETFs are witnessing an increase in inflow. Hence, the possibility of a recovery trend in the near future is on the rise. 

Moreover, as per our BTC price prediction, 2024 has extreme bullish potential for Bitcoin. 

Source – Tradingview

With the Bitcoin price falling last night by 3.40%, the downtrend tests the crucial bullish defense at the 50% Fibonacci level. Further, the rounding bottom pattern is under stress as the sellers are ready to form a second consecutive bearish candle. 

The overnight fall accounts for a liquidation of $63 Million in bullish positions, as per the Coinglass. Further, the recent spikes in bullish liquidations warn of a bearish trend continuation. 

Slightly above the psychological mark of $40K, the 50% Fibonacci level attempts to absorb the increased supply. However, the changing sentiments around the ETF news and the chances of a reversal in the S&P500 as it approaches its all-time high can have a negative impact on the BTC price. 

Source: TradingView

In the daily chart, the importance of the $41K support level in confluence with the 50% Fibonacci level is more clear. With multiple reversal spots, the recent drop in BTC price challenges the zone as the sellers overtake the 50D EMA. 

At press time, the BTC price trades at $41,115, with an intraday candle teasing a breakdown rally. 

Technical Indicators:

MACD Indicator: Following the bearish crossover in the daily chart, the MACD and signal lines are preparing a trend reversal signal in the weekly chart. This signifies a great loss of bullish momentum and the sellers taking over trend control.  

Grayscale turns to Coinbase with $420M worth of Bitcoin deposits. 

As per the latest tweet from the BITCOINLFG, Grayscale is turning to Coinbase with a large amount of Bitcoin deposits. The $420 Million deposit marks another outflow as the ETF news turns into a bigger sell the news event. 

While the HODLers interpret this move as a strategic liquidity provision, the general market sentiment sees this as an increase in selling pressure. 

Will BTC Price HODL The Fort At $40K?

As the selling sentiments are rising, the crucial support of the $40K mark is under extreme stress. The technicals are teasing a breakdown that may result in a quick fall to the 200D EMA at $35,200. Further, this level aligns with the 38.20% Fib level. 

However, a bullish reversal can help the BTC price bounce back to the overhead resistance at $46,758.