Pepe

Bitcoin

Vortex

<img width="1200" height="578" src="https://coingape.com/wp-content/uploads/2024/01/c5wCWx7r-e1705784529796.png" class="attachment-full size-full wp-post-image" alt="BTC price" decoding="async" style="float:right; margin:0 0 10px 10px;">
Bitcoin Price Prediction: Bitcoin, the largest cryptocurrency in terms of market capitalization, experienced a sharp downturn over the week, plummeting from $49,000 to $40,300. This significant 17.8% drop can be linked to market concerns surrounding the <a href="https://coingape.com/spot-bitcoin-etfs-see-inflows-of-33-1-million-on-day-6/">spot BTC ETF</a> being perceived as a ‘sell-the-news’ event, along with <a href="https://coingape.com/grayscale-ceo-challenges-bitcoin-etf-rivals-lauds-1-5-fee-amid-sec-approvals/">Grayscale’s ongoing liquidation</a> of its Bitcoin holdings. 
During this decline, sellers managed to break through the support trendline of the rising wedge pattern, suggesting that the Bitcoin price may be set for additional correction. 
<h2 id="b-reversal-pattern-signals-a-new-correction-trend-in-action-b">Reversal Pattern Signals a New Correction Trend in Action</h2> 
<ul> 
 <li style="font-weight: 400;" aria-level="1">A rising wedge pattern formation reflects the maturity of a recovery phase.</li> 
 <li style="font-weight: 400;" aria-level="1">The BTC price above the 38.2% and 50% Fibonacci retracement level reflects the buyers having a firm grip on this asset.</li> 
 <li style="font-weight: 400;" aria-level="1">The intraday trading volume in Bitcoin is $12.7 Billion, indicating a 52% loss.</li> 
</ul> 
<figure style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" src="https://s3.tradingview.com/snapshots/i/IrHU9Uqh.png" alt="Bitcoin Price" width="1946" height="937">
 <figcaption class="wp-caption-text">
 Bitcoin Price| TradingView Chart
 </figcaption>
</figure> 
The recent two-month recovery in the <a href="https://coingape.com/price/bitcoin/">Bitcoin price</a> is characterized by the emergence of a rising wedge pattern on the charts. Typically, this pattern signals a potential final surge from buyers before the cryptocurrency undergoes a substantial correction.&nbsp; 
Additionally, the underwhelming performance of the BTC price, despite the launch of the First Spot BTC ETF, has led to a sense of demotivation and concern among investors. Consequently, on January 12th, there was a significant outflow from Bitcoin, resulting in a decisive break below the support of the wedge pattern. 
<blockquote>
 This breakdown caused Bitcoin’s value to plummet to the 38.2% Fibonacci retracement level, with its price currently standing at $41,8.&nbsp;
</blockquote> 
Should the selling pressure continue, there’s a possibility of the cryptocurrency’s value dropping by another 15%, potentially reaching a local support level of around $35,550. 
<h2 id="b-number-of-whales-surge-at-bitcoin-price-dip-b">Number Of Whales Surge At Bitcoin Price Dip</h2> 
While the near-term projection for Bitcoin price seems bearish the on-chain activity reveals a notable development to strengthen the bullish outlook. Renowned cryptocurrency analyst <a rel="nofollow" href="https://x.com/ali_charts/status/1748346572457611510?s=20">Ali Martinez</a> recently shared on the X platform that there has been a notable rise in the count of large-scale Bitcoin investors, commonly known as ‘whales’. The tweet stated: 
<blockquote>
 Today marks a notable uptick in #Bitcoin whales! The number of addresses holding over 1,000 $BTC has reached its highest since August 2022, now totaling 1,510.&nbsp; 
 This increase in large #BTC holders could signal strong confidence or strategic positioning in the market.
</blockquote> 
<img decoding="async" class="aligncenter size-full wp-image-175712" src="https://coingape.com/wp-content/uploads/2024/01/GEM2EbYW4AAiPad-e1705784355255.jpeg" alt="No of Whales" width="1200" height="820"> 
In line with this development, Should the BTC value maintain stability above the 50% Fibonacci Retracement level of around $37,200, it could significantly enhance the likelihood of a robust recovery by buyers. 
<ul> 
 <li style="font-weight: 400;" aria-level="1">Vortex Indicator: A bearish crossover between the VI+ and VI- slope reflects the correction trend remains in action</li> 
 <li style="font-weight: 400;" aria-level="1">Exponential Moving Average: The coin price trading above the 100-and-200-day <a href="https://coingape.com/education/exponential-moving-average-how-to-leverage-it-in-crypto-market/">EMA</a> indicates the overall trend is bullish.&nbsp;</li> 
</ul> 
<h3 id="related-articles">Related Articles:</h3> 
<ul> 
 <li><a href="https://coingape.com/markets/crypto-price-prediction-today-jan-21-eth-sol-lunc/">Crypto Price Prediction For Jan 21: Ethereum (ETH), Solana (SOL), Luna Classic (LUNC)</a></li> 
 <li><a href="https://coingape.com/crypto-prices-today-bitcoin-btc-price-rises-above-41500-ether-edges-higher-while-pepe-declines/">Crypto Prices Today: Bitcoin (BTC) Price Rises Above $41,500, Ether Edges Higher While Pepe Declines</a></li> 
 <li><a href="https://coingape.com/bitcoin-prepares-for-potential-pre-halving-correction/">Bitcoin Prepares for Potential Pre-Halving Correction</a></li> 
</ul> 
The post <a href="https://coingape.com/markets/bitcoin-price-at-risk-15-as-sellers-break-50-day-support/">Bitcoin Price at Risk of 15% Drop As Sellers Break Below 50-Day Support</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Bitcoin Price at Risk of 15% Drop As Sellers Break Below 50-Day Support

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