An 8% flash crash in Bitcoin (BTC) price took many crypto investors off guard in the early hours of Monday. The most valuable cryptocurrency on the planet plunged to $40,400 before stabilizing above $42,200 at press time.
This sharp sell-off resulted in a major crash in the altcoin market as the Total 3 market capitalization dropped 3.18%. However, a couple of altcoins like IMX, INJ, BNB, and SNX still managed to stay green amid a bearish BTC price action.
Today’s negative price action in Bitcoin and other digital assets comes after the former gave its highest weekly closure in the last 21 months. Consequently, most analysts have flipped very bullish on the cryptocurrencies with some of them anticipating BTC to hit $100,000 in 2024.
The rally seems to be driven by the optimism around the approval of a spot Bitcoin ETF in early 2024. However, there is no such indication from the US SEC, and a delay won’t be surprising. Another factor contributing to the uptrend in the digital asset markets is the halving of the Bitcoin mining rewards in April 2024.
I have marked the areas of demand and supply on the above-mentioned BTC/USD chart. In a short timeframe, $42,821 is an immediate resistance that needs to be reclaimed soon. On the other hand, while the price pierced through the $41,270 support earlier today, it avoided a candle closure below this level.
Overall, the high timeframe Bitcoin price prediction remains bullish, but the bears have started to step in on the lower timeframes. There is still a strong chance that the pioneering digital asset tests the $46,000-$48,000 regions before a major correction.
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This post was last modified on Dec 11, 2023, 13:27 GMT 13:27