The decline in Bitcoin price coincided with a significant supply zone, where some 1.8 million addresses scooped crypto’s largest token by market cap.
Crypto buyers acquired 730,000 Bitcoin (BTC) as the token fell into a demand channel within the price range of $41,200 and $42,400, according to IntoTheBlock data. One trader predicts that this latest movement from crypto’s leading coin could spur a descent to lower levels amid buy-the-dip calls from bulls on social media.
The analyst, known by their X page name ali_charts, surmised that Bitcoin’s ranging price is likely to attract sell pressure from holders looking to take profits to secure gains and hedge against potential market dips.
BTC could correct into the next supply zone between $37,500 and $38,700, where over a million addresses bought 553,000 Bitcoin. Ali noted that this scenario plays out if sell pressure continues to increase due to sideways and declining price patterns from BTC.
Bitcoin traded below its 2023 high of $44,613 for the tenth consecutive day at press time. The token was still up double digits in the last 30 days, gaining more than 12% since around Nov. 19 per CoinMarketCap.
Analysts said BTC must stay above $43,000 if the market hoped for a continued rally, crypto.news reported. Experts also pointed to a peak for BTC in December 2023 or January 2024, followed by a massive pullback for markets to cool off.
While BTC’s price remains a stalwart topic among crypto participants, the cost of transactions has also piqued interest thanks to a burgeoning token standard known as inscriptions or ordinals.
The ordinal waves reportedly sent BTC gas fees to record high—additionally, such transactions spiked on-chain activity on other blockchains like Avalanche and Arbitrum.
