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- Bitcoin declines after days of continuous rally as market sentiment becomes bearish.
- Binance CEO has also predicted that Bitcoin could rise to the “moon” after the halving event next year.
Bitcoin (BTC) set a yearly high record in the recent rally, breaking a major resistance level at $36k to retest 37k. In a surprise turn of events, the market sentiment of Bitcoin has flipped to bearish with a score of 31/100. Bitcoin dipped by 5 percent before marginally recovering a portion of the lost value to record a 3.3 percent in the last 24 hours.
The asset is down by 0.75 percent in the last seven days to position the price at $36,289.06. Some hours ago, Bitcoin breached the $36,000 support level to trade at $35,774.80, before making a quick rebound to the current position.
The current market behavior indicates a strong contention between buyers and sellers. Analysts believe that most sellers are attempting to take profits at this price point, while buyers are opening new positions to take advantage of any future bull run.
A crypto analyst identified as CrediBULL Crypto stated that this is a perfect opportunity to enter the market. In his previous prediction, CrediBULL Crypto stated that Bitcoin would retest the $34,600 support level. According to him, the market bulls helped sustain “midrange, drive consolidation, and then impulse”.
More Analysis on Bitcoin Price
Bitcoin is quite far away from the support level, but the current outlook supports this prediction as analysts believe that profit-taking is systemic. It can be traced back to the long positions built over the past few days. With the situation that short sellers have been taken out of the market, a pullback is likely to occur. According to data from CoinGlass, $217.79 million has been liquidated from the market in the past 24 hours.
Over 77,200 million traders were involved in this liquidation exercise. This liquidation was also done by traders who mostly went long. Altcoins including Ethereum has also had its fair share of the pullback as it declines by 3 percent in the last 24 hours.
He believes that Bitcoin will keep changing impulses until it hits the $40k psychological level. After this point, the asset would not be far from a new all-time high.
David Lo, Head of Financial Logics, Bybit, has also predicted Bitcoin could go as high as $40k in the 4th quarter. His prediction came when $31k was the support level and the asset was returning to a more volatile and normalized trading environment.
In the early stages of a bull market, bitcoin typically leads the pack and its dominance rises. With the $31,000 level now acting as the new support level, the next target for bitcoin is $36,000, with $40,000 in sight given the rising volatility.
Binance CEO Changpeng Zhao has also stated that 2024 could be an important year for the crypto market as the much anticipated Bitcoin halving event could send the “price to the moon.”
For example, the pace of the bitcoin spot ETF approval process in the US remains uncertain. Additionally, there is the potential for GBTC holders and various bankruptcy estates to sell bitcoin, which could put downward pressure on prices.
