Fluctuating cost may lead to a decline below $40k for s.
Bitcoin’s price decline coincided with a significant supply zone, where approximately 1.8 million addresses acquired the largest cryptocurrency by market capitalization. According to data from IntoTheBlock, crypto buyers purchased 730,000 Bitcoin as the token entered a demand channel within the price range of $41,200 and $42,400. This movement has led some traders to predict a further drop in price, with calls to “buy the dip” circulating on social media.
One analyst, known as ali_charts, believes that Bitcoin’s current price range will attract sell pressure from holders who wish to secure their gains and hedge against potential market downturns. They speculate that BTC could correct into the next supply zone, which lies between $37,500 and $38,700, where over a million addresses have previously bought 553,000 Bitcoin. Ali_charts suggests that this scenario could unfold if sell pressure continues to increase due to the sideways and declining price patterns of BTC.
At the time of writing, Bitcoin was trading below its 2023 high of $44,613 for the tenth consecutive day. However, it has still experienced double-digit gains in the last 30 days, with an increase of over 12% since November 19, according to CoinMarketCap. Analysts believe that BTC must stay above $43,000 to sustain its rally. They also anticipate a peak for Bitcoin in December 2023 or January 2024, followed by a significant pullback to cool off the markets.
While Bitcoin’s price remains a popular topic among crypto enthusiasts, transaction costs have also become a point of interest due to a growing token standard known as inscriptions or ordinals. These ordinal waves have reportedly caused BTC gas fees to reach record highs and have increased on-chain activity on other blockchains like Avalanche and Arbitrum.
In conclusion, Bitcoin’s recent price decline has sparked interest among traders and analysts who are closely monitoring sell pressure and potential correction levels. The future price movement of BTC remains uncertain, but market participants are also keeping a close eye on transaction costs and the impact of token standards on blockchain activity.
