Bitcoin Faces Supply Challenges At $38K, Indicating An Inflection Point: Can BTC Price Maintain Strong Limit Bids?
The post Bitcoin Faces Supply Challenges At $38K, Indicating An Inflection Point: Can BTC Price Maintain Strong Limit Bids? appeared first on Coinpedia Fintech News
Bitcoin’s value has recently shifted direction due to an increase in profit-taking activity just below the $38,000 mark. This level has been a crucial area, having the potential to send the BTC price toward $40,000. However, continuous resistance at this mark places Bitcoin in a bearish influence. Additionally, the uptick in limit bids signifies a critical inflection point for Bitcoin, raising concerns about a short-term correction in the coming hours.
Bitcoin’s Whale Interest Spiked Ahead Of Rejection
In the last 24 hours, Bitcoin experienced a substantial long liquidation exceeding $2 million, following a decline from its high of $37.8K. The recent activity appears to be tilting towards a bearish sentiment, potentially leading to further corrections in its price.
Recent analyses, focusing on Binance Spot and Perpetual markets, suggest that Bitcoin is facing increasing selling pressure, particularly at $38K. One of the most notable aspects of the current market scenario is the presence of a significant supply wall around the $38,000 mark. In the Binance Spot market, there is a growing consensus that an important lower auction is imminent. This sentiment is driven by the observation of strong limit bids in the market, which can trigger a bearish rally.
In Binance Perpetuals, there’s a trend of placing limit bids below the current Bitcoin price, which is unusual. These could become key points where the market might change direction, depending on how these bids are handled.
Data from IntoTheBlock showed a significant increase in large-value transactions when the price approached $38K, with the total jumping from $16.8 billion to $33.6 billion. It appears that big investors, or “whales,” sold off their holdings just before hitting the $38K level, leading to the recent drop in price. This move allowed them to leave the market with profits.
What’s Next For BTC Price?
Bitcoin, after reaching just below $38K, witnessed a surge in profit-taking sentiment among holders, resulting in a correction. This level has been defended by bears thrice, and they are likely to attempt to hold it for a longer period.
Currently, Bitcoin price is breaking below the trend line, which might bring another selloff. Should Bitcoin continue to fall and drop below the 50-day EMA, it could activate the stop-loss orders of many short-term traders. This could lead to a correction in the BTC price, potentially testing the $36,400 level.
On the other hand, if the bulls successfully break through the $38,000 barrier, it could signal the beginning of a new upward trend. The price might then rise towards $40,000, which is expected to be another major point of resistance. The downward trend of the moving averages and trade below the midline for the RSI level suggest that it’s easier for the price to decline than to surge.
