- Selling pressure on Bitcoin had declined, hinting at a trend reversal.
- BTC was up by more than 1% in the last 24 hours, and a few indicators looked bullish.
Last week was not in the best interest of Bitcoin [BTC] investors, as the king of crypto shed a substantial amount of its value. The price correction pushed the coin’s value once again under the $40,000 mark.
However, the misery didn’t end there; the latest data suggested that if BTC continues to drop and falls under $38,000, things could get even worse.
Bitcoin must recover from this bloodbath
CoinMarketCap’s data revealed that the king of cryptos’ price dropped by more than 6% in the last seven days. IntoTheBLock also posted a tweet mentioning how this price correction affected investors.
As per the tweet, Bitcoin’s price dip to $39,000 has impacted investor sentiment, notably as nearly 23% of BTC addresses were at a loss.
This was a significant increase from just 13% compared to the previous week.
Bitcoin’s price dip to $39,000 has impacted investor sentiment notably. Currently, approximately ~23% of Bitcoin addresses are in a loss position, a significant increase from just 13% a week ago.
Our analysis of the in/out of the money indicator reveals substantial resistance… pic.twitter.com/FaT0emmjSy
— IntoTheBlock (@intotheblock) January 23, 2024
Bitcoin to move under $38,000?
However, the good news was that Bitcoin’s price action showed signs of recovery. Notably, the coin’s value surged by more than 1% in the last 24 hours.
At the time of writing, it was trading at $39,923.35 with a market capitalization of over $782 billion.
Even better news was revealed by CryptoQuant analyst Mignolet, who mentioned that sell pressure on BTC was dropping.
Source: CryptoQuant
The analysis noted,
“Selling pressure from the United States, which led to the price decline, is weakening. In the current range, there is a high likelihood of a rapid price recovery.”
Therefore, to check whether selling pressure was actually on the decline, AMBCrypto took a look at other datasets.
We found that BTC’s net deposit on exchanges was low compared to the last seven days’ average. This meant that investors were once again buying BTC, hinting at a price uptick soon.
Source: CryptoQuant
The aforementioned datasets suggested that the probability of BTC going above $40,000 this week was high. However, concerns remain, as there is a chance of a continued price downtrend.
Notably, Ali, a popular crypto analyst, posted a tweet talking about the importance of Bitcoin holding its ground above the $39,800 mark.
If BTC continues to shed its value and goes below the $38,000 mark, it could trigger yet another bear rally for the coin.
Read Bitcoin’s [BTC] Price Prediction 2024-25
AMBCrypto took a look at Bitcoin’s daily chart to gauge where prices might head next.
Our analysis revealed that BTC’s Money Flow Index (MFI) and Relative Strength Index (RSI) registered upticks, indicating a continued price uptrend. Nonetheless, the MACD remained bearish.
Sourec: TradingView
This news is republished from another source. You can check the original article here