The price of Bitcoin has seen a 5% drop over the last 24 hours, trading at $41,645 on Dec. 11. Despite this correction, technical indicators and on-chain data suggest continued strength in Bitcoin’s position. This comes as Bulls aim to push the price back above $44,000.
Data from on-chain analytics firm CryptoQuant suggests that Bitcoin’s price was “overextended” after surpassing the $40,000 psychological level. Analysts are also pointing to signs of exhaustion among bulls, noting that Bitcoin’s relative strength index (RSI) has been massively overbought since early December.
The ongoing correction in the Bitcoin market is attributed to resistance around the $44,000 supply zone, according to the golden ratio multiplier indicator. This level has proven to be a tough hurdle for bulls to overcome, as aggressive selling has been observed when attempting to push the price above it.
Despite the correction, there are indications that Bitcoin could sustain its uptrend. Exchange outflows are increasing, suggesting that investors are more inclined to hold rather than sell. Additionally, Bitcoin is trading above all major moving averages, with the moving average convergence divergence indicator (MACD) still favoring the upside.
Looking ahead, BTC’s price is expected to continue rising, with potential targets including a break above $44,000 and a move towards the $50,000 psychological level. It’s worth noting that regulatory decisions and events such as the next Bitcoin halving could also impact Bitcoin’s price in the coming months.
This article provides a comprehensive analysis of Bitcoin’s current market conditions and offers insights into potential future price movements. Readers should be aware that all investments and trading moves involve risk and should conduct their own research before making any decisions.
