Bitcoin Price Dips to $40K in Minor Price Correction
11 Dec, 2023 ● Coin news
On December 11, a substantial 7% decline in the price of Bitcoin (BTC) occurred as a number of indicators flashed sell signals and traders booked profits.
It will be determined by Bitcoin's ability to hold above $42,000 whether this crash is a sign of a general market reversal or a buy-the-dip opportunity.
The abrupt 6.5% drawdown and the market's extensive liquidations of over $300 million coincide with the steep decline in BTC prices seen on the daily chart.
Zooming in to the longer 1-day candle period, though, this movement seems to be a slight retreat from a larger bullish trend that has been formed over the previous few months. Additionally, below 70, the relative strength index (RSI) has declined into neutral territory.
Key levels that have been noteworthy since 2021 are $31,860, $28,050, and $25,200. These are important levels to keep an eye on.
Consequently, the argument that the current price action is within the bounds of a healthy correction rather than a bearish trend reversal is supported by the fact that the price of Bitcoin has not approached these levels and that the recent uptrend has been strong enough to easily surpass minor resistance levels.
Sources:
https://cointelegraph.com/news/is-bitcoin-price-dip-40k-bear-trap
