The crypto market, especially Bitcoin (BTC), has recently declined. Amid these fluctuations, the flagship cryptocurrency has been intensely scrutinized. Despite its decline from the recent peak of $44,000, a crypto analyst urged the community not to “succumb to panic.” The current market situation reflects a typical correction phase rather than a long-term bearish trend. According to Ali Charts, a prominent crypto analyst, Bitcoin has established a “robust” support zone between $37,150 and $38,360. This critical range is bolstered by the activity of approximately 1.52 million addresses that collectively purchased roughly 534,000 BTC at that price point, as indicated by Ali. Related Reading: Market Jolt: Bitcoin Falls Below $42,000 As Short Term Holders Rush To Cash In The analyst suggests that the significant accumulation forms a “strong” foundation, potentially preventing further declines in Bitcoin’s value. Bitcoin’s Resistance And The Road Ahead Despite the recent market downturn, Bitcoin’s potential for recovery and continued growth remains a subject of interest. Ali has also identified two key resistance levels at $43,850 and $46,400 that could challenge Bitcoin’s upward momentum. These points represent significant thresholds where selling pressure may intensify, potentially hindering Bitcoin’s ability to reclaim its recent highs. In case of a deeper correction, #Bitcoin finds solid support between $37,150 and $38,360. This zone is backed by 1.52 million addresses holding 534,000 $BTC. Also, watch out for two resistance walls that could keep the #BTC uptrend at bay: one at $43,850 and another at $46,400. pic.twitter.com/NGm1XpMOLf — Ali (@ali_charts) December 11, 2023 Meanwhile, the past 24 hours have seen Bitcoin’s price dip by 0.3% with a price below $42,000, continuing its retreat from the $44,000 mark. This reduction in value is mirrored in the crypto’s trading volume, which has fallen from $37 billion to $21 billion. This decline indicates a decreased trading activity, suggesting a cooling-off period following the recent market rally. The Positive Side Of The Bitcoin Pullback Amid concerns over Bitcoin’s price fluctuations, experts like William Clemente, co-founder of Reflexivity Research, offer a different perspective. Clemente emphasizes that the current pullback, potentially bringing Bitcoin’s price to around $40,000, is not necessarily a negative development. Clemente argues that this correction is essential for “shaking out weak hands” and reducing leverage in the market, ultimately laying a more solid foundation for future growth. Related Reading: The Bitcoin Spot ETF Boom: VanEck Forecasts $2.4 Billion Inflows In Q1 2024 The Co-founder of Reflexivity Research further noted that “Bitcoin’s volatility is a feature, not a bug.” BTC just ~doubled in 2 months with no pull backs, a correction is not that surprising. Corrections shake out “weak hands” and leverage, allowing for a stronger foundation for eventual moves higher. Bitcoin’s volatility is a feature, not a bug. Chill with the leverage 🫡 https://t.co/BdvvS8KDZU — Will (@WClementeIII) December 11, 2023 Featured image from iStock, Chart from TradingView
