Bitcoin traders have probably peaked, which would indicate that the present sell-off in BTC prices has reached its lowest point. Since the first week of November coincidentally, just before Donald Trump’s US election victory—the daily chart of Bitcoin has not shown three consecutive red candles.
When three or more red candles appeared on the daily chart last, Bitcoin retested the 50-day exponential moving average level, which is another commonality. Bitcoin Sell-Off Nears: The biggest cryptocurrency may have passed the worst of the slump, according to one analyst, as the price of Bitcoin has fallen by more than 15% from its all-time high.
Bitcoin decrease is “almost done,” says analyst
Bitcoin’s price declined below $93,000 on December 20, and independent crypto trader Captain Faibik predicted that the correction in BTC’s value was coming to an end. This trader pointed out in an X post that the present drop in Bitcoin’s price is caused by a huge negative divergence between the price and relative strength index (RSI) during the last month. As a “healthy reset,” such divergences are typically followed by a decline of 8 to 10%.
According to the trader’s analysis, the price is likely to rebound from the $94,000 range. The anonymous crypto trader known only as “Cold Blooded Shiller” anticipated a more severe decline. Bitcoin price using the same signal of divergence. A trader has speculated that Bitcoin’s sell-off would reach $85,000. If a similar scenario plays out, draw a comparison to the present market behavior in January 2024.
As for the futures market, expert Byzantine General pointed out that spot holders were constantly selling. According to the analyst’s statement, it is a Noteworthy selling action since Bitcoin’s price reached $66,000. After hitting a quarterly low, the Coinbase premium has been under “relentless” selling pressure.
Bitcoin realized losses reached $28.9 million.
As selling pressure increased hourly, the volume of realized losses also reached a peak higher than its weekly average. The realized losses of BTC over the previous five days totaled $28.9 million. Which is 320% higher than its weekly average in 2024. According to Bitcoin on-chain expert Axel Adler Jr., So far this year, just ten numbers have surpassed 28 million.
Looking at Bitcoin’s intermediate-term chart, a bearish break of structure (BOS) was indicated. However, as long as Bitcoin keeps closing its daily candle of over $95,000, a reversal is clearly out of the question. The data shows that following a dip to $92,777, the 4-hour candle has quickly recovered and is now above $95,000. Bitcoin Sell-Off Nears: A daily candle close above $95,000 would be perfect for Bitcoin to counteract the negative mood.
Summary
Since traders’ losses have peaked, the Bitcoin sell-off may be nearing its bottom. Bitcoin’s price fell below $93,000, but economists expect a rebound from $94,000. Bitcoin’s price drops after a negative divergence with the relative strength index (RSI), usually by 8-10%. Some analysts predict a deeper drop to $85,000. Selling pressure has caused $28.9 million in losses, exceeding the weekly average. If Bitcoin’s daily price stays over $95,000, the trend may reverse, signifying recovery.
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