The cryptocurrency market is experiencing a downturn, with $250 million in positions liquidated in the last 24 hours, including $60 million in Bitcoin long positions. Traders are cautious, citing macro and technical factors that could lead to a weak trend, as Bitcoin’s price drops below the $40,000 support level.
After a price rally in December 2023 triggered by significant purchases from individual and institutional investors, analysts see a potential correction in Bitcoin’s price. The CME Bitcoin gap at $39,700 was filled as Bitcoin’s price dipped to a 24-hour low of $38,723.
Peter Brandt responded to investor Cheds’ Bitcoin price prediction, suggesting that the decline was due to weak long positions and that investors might return to long positions below $40,000. Brandt is interested in seeing what will happen if the parabolic pattern is retested.
As key support levels break and the CME Bitcoin gap is filled, long-term investors may consider buying at the dip. Brandt also hints at a possible retest of the parabolic trend by the end of February or early March if the pattern continues.
Analyst Ali Martinez reports that whales sold over 70,000 BTC worth more than $3 billion in the last two weeks. Rekt Capital points out that corrections before Bitcoin halvings are historically common, suggesting a potential level before the next halving. Meanwhile, Bitcoin’s price has fallen over 4% in the last 24 hours, finding buyers at $38,900, with a significant 78% increase in trading volume indicating sharp movements.
