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Sohrab Khawas
Sohrab Khawas
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Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Dec 13, 2023 07:15 UTC
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BTC Price Stressed At $40K, Can Buyers Take It Off To $45K?
Bitcoin falls to the $40K support pad, failing to cross the $45K mark.
Retesting the $40K breakout and the rising channel breakout.
A post-retest reversal can raise the BTC price to break the $45K barrier.
Tracing back its steps, Bitcoin takes a sharp fall this week, potentially the first bearish week after eight weeks of bull run. However, this Sunday’s closing price should be below $43,786 for this to happen. This gives enough time for the buyers to reclaim the trend momentum and potentially push the BTC price higher than $45K if the retest phase succeeds.
Starting the week with a 5.81% fall this Monday, the profit booking spree cuts out a significant amount of last week’s bull run. Currently, the BTC price retests the $40K break and is also a critical trendline breakout.
BTC Price Chart Signals A Pivotal Juncture At Play
The 1D price chart shows a bullish breakout rally of a rising channel and the $40K mark, failing to break above the $45K barrier. This results in a pullback phase and retests the channel breakout. Further, the gradual increment in selling pressure warns of a longer correction, potentially sliding to $37,700.
At present, the BTC price trades at $41,030 and forms a bearish candle with an intraday fall of 1.03%. Resting above the broken trendline, Bitcoin struggles to gain momentum for a post-retest reversal. Nevertheless, the frequent long-tail formations tease a bounceback, and the fall in trading volume supports the possibility of reversal.
On-Chain Data Shows That HODLers Always Win
With more than 90% pullback during the 2011 bear market, the pullback trend from ATH has been mostly declining. From 85% in 2015 to 75% in 2020, the pullback phase from ATH is losing intensity, except for the black swan event of FTX in 2022.
With the larger picture showcasing a rise in Bitcoin price since its inception, the long-term holders are winning on paper. Therefore, in the long-term term, the BTC price prediction remains optimistic and hints at $100K next year.
Is It Worth Buying This Dip In Bitcoin?
If Bitcoin shows sustainability above $40K, then the buyers will likely manage to revive the uptrend and aim 25% higher to reach the $50,000 mark. Potentially creating a new 52-week high, the BTC price will likely enter 2024 at levels greater than $50,000.
On the flip side, a failure to sustain above $40K will likely prolong the correction spree to a dangerous extent. In this case, Bitcoin will likely retest the crucial support of the rising trendline and the 50D EMA at $37,700.
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