Convergence

Bitcoin

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Divergence

<ul>
 <li>Bitcoin’s Funding Rate has continued to decline.</li>
 <li>BTC has seen waning fortunes as well, as it dropped off the $42,000 price range.</li>
</ul>
Recently, <a href="https://ambcrypto.com/search/bitcoin" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin [BTC]</a> fell below the $42,000 price range, and there is a possibility of further descent if the current downward trend persists. The price decrease has led to a decline in trader sentiment and an increase in long liquidations.
<h4>Bitcoin price falls from two key positions</h4>
Over the last two days, <a href="https://ambcrypto.com/btc-eth-lose-over-the-weekend-whats-next/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin’s</a> price has fallen below two significant thresholds. On the 17th of December, the daily timeframe chart revealed a drop below the $42,000 mark.
 The chart also indicated a slight dip below the $41,000 range at the time of this writing. This downward trend has characterized the price movement since it surpassed&nbsp; $40,000.&nbsp;
<div id="attachment_359384" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-18_13-23-19.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-359384" decoding="async" class="wp-image-359384 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-18_13-23-19.png" alt="BTC/USD price trend" width="1475" height="785" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-18_13-23-19.png 1475w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-18_13-23-19-300x160.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-18_13-23-19-1024x545.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-18_13-23-19-768x409.png 768w" sizes="(max-width: 1475px) 100vw, 1475px"></a>
 Source: TradingView
</div>
Also, as of this writing, the Moving Average Convergence Divergence (MACD) trend has turned negative, signaling a bearish trend. 
This observation aligned with the confirmation provided by the Relative Strength Index (RSI) line, which was around 50. The position of the RSI indicated a weak bullish trend and a potential shift to a bearish trend shortly.
<h4>Bitcoin long traders continue to take hits</h4>
Although the sentiment remained positive despite the recent price drop, it was declining. AMBCrypto found that, as per <a href="https://www.coinglass.com/currencies/BTC" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">Coinglass’</a> data, there was a decrease in <a href="https://ambcrypto.com/as-bitcoin-price-stagnates-whats-next-for-its-prediction/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin’s</a> Funding Rate following the drop in its price. 
As of this writing, the Funding Rate was around 0.010%, down from 0.014 on the 17th of December. This Funding Rate suggested that fewer traders showed optimism about a price increase.&nbsp;
Additionally, due to the price decline, more long positions have been liquidated than short ones. 
According to Coinglass, on the 17th of December, long positions experienced a liquidation of over $30 million, while short positions saw a liquidation of $5 million. 
This trend persisted at press time, with the latest data showing continued liquidation of long positions at over $29 million and around $3 million for short positions.
Read <a href="https://ambcrypto.com/predictions/bitcoin-price-prediction" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin’s [BTC] Price Prediction</a> 2023-24
<h4>Bitcoin inflows dominate exchange flows</h4>
The <a href="https://ambcrypto.com/as-bitcoin-network-gets-busy-miners-reap-rewards/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin</a> exchange flow chart reveals increased BTC movements into exchanges recently. The move signaled a potential sell-off that may account for observed price fluctuations. 
As of this writing, there were indications of a temporary halt in this inflow, with a notable increase in outflow. Additionally, over 2,000 BTC have been withdrawn from exchanges.
<div id="attachment_359385" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Netflow-Total-All-Exchanges-1.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-359385" decoding="async" class="wp-image-359385 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Netflow-Total-All-Exchanges-1.png" alt="Bitcoin exchange flow" width="2560" height="1612" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Netflow-Total-All-Exchanges-1.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Netflow-Total-All-Exchanges-1-300x189.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Netflow-Total-All-Exchanges-1-1024x645.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Netflow-Total-All-Exchanges-1-768x484.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Netflow-Total-All-Exchanges-1-1536x967.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Netflow-Total-All-Exchanges-1-2048x1290.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 Source: CryptoQuant
</div>

Why Bitcoin longs are seeing liquidations

AMBCrypto

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