Should the leading cryptocurrency fall below $38,130, short-term holders may find themselves at a loss and attempt to minimize their losses, according to technical analyst Ali.
If #Bitcoin‘s price falls below $38,130, short-term $BTC holders could find themselves in the red. This potential #BTC dip might trigger a new wave of panic selling as these holders will seek to minimize losses. pic.twitter.com/TnAH67DPV6
— Ali (@ali_charts) January 25, 2024
Thus, a potential downturn could trigger a new wave of panic selling, the trader believes.
Despite the market correction, Ali noted that whales continue to accumulate the digital gold.
Even amidst this market correction, #Bitcoin whales are not slowing down – they’re accumulating more $BTC!
In fact, there’s been a notable increase in major players: 46 new entities now hold 1,000 #BTC or more, marking a 3% increase in just two weeks. pic.twitter.com/GVNInKW7A2
— Ali (@ali_charts) January 24, 2024
According to the analyst, the number of major players has increased by 3% over two weeks, with 46 new addresses holding 1,000 BTC or more.
Experts from CryptoCon highlighted Bitcoin’s 100-week simple moving average (SMA), which “suggests one of the most aggressive declines.” They are confident that a target has formed at the $28,000 level.
“[SMA] and other indicators show that after Bitcoin rises, it returns to the top of the wave to retest the moving average. Some think the decline might have ended after falling to $38,000, but the cycle time and a rise of more than 90% demand more,” the experts added.
At the time of writing, digital gold is trading at $40,146, with little change in price over the day.
Previously, Ali illustrated the price patterns of the last two cycles of the leading cryptocurrency and suggested a further decline in the coin’s rate. He does not rule out a dip to $32,700.
Former BitMEX CEO Arthur Hayes also stated that in the short term, Bitcoin could fall to $35,000 amid “excessive” inflation.