Bitcoin Bounces Back to $42K Following Price Dip
12 Dec, 2023 ● Coin news
Bitcoin holds onto its $40,000 support level and rises after a minor price dip as traders watch the effect of "institutional sized" moves on the price of the cryptocurrency.
The biggest cryptocurrency is still re-gaining lost ground despite hitting lows of $40,200 following the weekly close on December 10.
As the price of Bitcoin takes a break from its continuous rises, which many believe was long overdue, new important levels of support and resistance are entering the picture.
There are already a lot of potential volatility triggers in store for the upcoming days. The first US macro data releases happen on December 12, and the Federal Reserve's interest rate decision and Chair Jerome Powell's remarks come the next day.
Upon uploading a print of the BTC/USDT order book liquidity overnight to Binance, the world's largest exchange, trading resource Material Indicators unveiled a new support band situated at $38,500.
Although it is below both the bottom of this week and $40,000, Material Indicators indicated that "institutional sized" bids might be coming back, though there might be a catch.
"It's not yet clear whether they are legitimately starting to accumulate at these levels or just buying dips and selling rips," according to an accompanying analysis.
It continued, "After all, we have a Fed Rate Hike decision coming this week and # JPow’s speeches are typically good for some volatility."
Sources:
https://cointelegraph.com/news/buy-the-dip-sell-the-rip-btc-price-levels-to-watch-bitcoin-taps-42-k
