๐ก Bitcoin Price Forecast: Bitcoin, the largest cryptocurrency by market capitalization, experienced a sharp decline from $49,000 to $40,300 in a week. This significant 17.8% drop may be linked to market concerns that the spot BTC ETF is perceived as a "sell-the-news" event, along with ongoing Grayscale Bitcoin asset liquidations.
๐ During this decline, sellers managed to break the support line of the ascending wedge, suggesting that the Bitcoin price may be set for an additional correction.
๐ Reversal Model Signals a New Correction Trend in Action
๐ The formation of the ascending wedge pattern reflects the maturity of the recovery phase. The BTC price above the Fibonacci correction levels of 38.2% and 50% indicates that buyers are holding onto this asset firmly. Intraday Bitcoin trading volume is $12.7 billion, indicating a 52% loss.
๐ Recent two-month Bitcoin price recovery is characterized by the emergence of an ascending wedge pattern on the charts. Typically, this pattern signals a potential final surge of buyers before the cryptocurrency undergoes a significant correction.
๐ค Additionally, the discouraging BTC price dynamics, despite the launch of the First Spot BTC ETF, has led to a sense of demotivation and concern among investors. As a result, on January 12, there was a significant outflow of bitcoins, leading to a decisive breakthrough below the wedge model's support.
๐ This breakthrough resulted in Bitcoin's price falling to the Fibonacci correction level of 38.2%, with its current price at $41,800.
โ ๏ธ If selling pressure continues, there is a possibility of the cryptocurrency's price falling by an additional 15%, potentially reaching a local support level around $35,550 USD.
๐ Whale Activity Surges Amid Bitcoin Price Decline
๐ While the short-term Bitcoin price forecast appears bearish, network activity demonstrates notable development, reinforcing a bullish outlook. Renowned cryptocurrency analyst Ali Martinez recently shared on the X platform that there is a noticeable increase in the number of large Bitcoin investors, widely known as "whales." The tweet stated:
๐ "Today marks a noticeable increase in the number of #Bitcoin whales! The number of addresses holding more than $1,000 USD BTC has reached the highest level since August 2022 and is currently at 1,510."
๐ Such an increase in the number of large #BTC holders may signal strong confidence or strategic positioning in the market.
