Recently, the market has been following a fluctuating trend with the correction observed in the price of Bitcoin. Bitcoin dropped to $40,234.58 in the past day. While the downward contraction in the market leaves investors in a dilemma regarding buying and selling, there are various opinions on whether this situation will continue for a while. However, according to experienced analyst Ali Martinez, there is no reason to panic in the current situation.
Martinez’s to the evaluation Accordingly, Bitcoin price has found solid support between $37,150 and $38,360. This support level is supported by a solid wall formed by a total of 1.52 million addresses receiving 534,000 BTC.
In case of deeper correction, #Bitcoin finds solid support between $37,150 and $38,360. This zone is backed by 1.52 million addresses holding 534,000 $BTC.
Also, watch out for two resistance walls that could keep the #BTC uptrend at bay: one at $43,850 and another at $46,400. pic.twitter.com/NGm1XpMOLf
NEWS CONTINUES BELOW— Ali (@ali_charts) December 11, 2023
However, while there is still significant pessimism in the market, Martinez argues that the current situation has not reached the level of panic. The analyst also points out the obstacles to the potential rise if the bulls have a positive attitude towards Bitcoin. The first significant resistance levels are set at $43,850 and $46,400.
According to Martinez, these resistance levels stand out as large walls ready to limit Bitcoin’s possible rise. Therefore, traders and investors should keep a close eye on these critical levels when predicting future price movements.
In this prediction, the analyst uses the In / Out of the Money Around Price (IOMAP) indicator developed by IntoTheBlock. Although the indicator itself cannot be used to determine exact resistance or support points, information about the concentration of funds around a particular price can give a clue about the potential of the asset’s movement rate.
According to this indicator, the average price at which cryptocurrencies are purchased, that is, the cost, is determined and compared with the current price. If the Current Price is greater than the average cost, this address is determined as “In”, that is, “in profit”. If the current price is less than the average cost, the address is defined as “Out”, that is, “at a loss”.
The predictions that traders make using the indicator are based on the psychology of its owners; Traders who remain at a loss for a long period of time tend to sell or dispose of their assets at the entry point to avoid losses if the asset pulls back for any reason.
The reasons that triggered Bitcoin’s rise are still on the table
Despite the current pessimism in the market, it is possible to say that Bitcoin has shown an extraordinary performance since the beginning of the year.
Bitcoin started from last year’s lowest level of $16,398.14 and rose to $44,702, and this rise was fueled by some developments. Bitcoin spot Exchange Traded Fund (ETF) sentiment, in particular, stood out as the ultimate trigger for this increase in price.
Investors are optimistic that this financial instrument will provide greater access to Bitcoin and increase interest in cryptocurrencies. The ETF offers the opportunity to invest in Bitcoin in a way similar to traditional financial instruments, which could attract new investors and allow existing investors to diversify their portfolios.
Investors in the US share this optimism for the Bitcoin spot ETF. The expectation that this product will be given the green light in the near future further supports the rise in Bitcoin’s price.
You can follow the current price movement here.