TL;DR
The crypto market surprised traders this Monday and delivered a rollercoaster of price movements that were hard to stomach. The steep volatility triggered approximately $400 million in liquidations in crypto futures markets, destroying leveraged, long, and short positions alike.
Following this Monday’s correction, the trader warned its users that a more profound correction would find a “firm support zone” between $37,150 and $38,360.
In the case of a reversal, Bitcoin will face several obstacles before resuming its upward trajectory, the trader said.
“Watch out for two resistance walls that could keep the BTC uptrend at bay: one at $43,850 and another at $46,400.”
Similarly, CryptoPotato reported that BTC must successfully hold the $40,000 mark to trigger a rebound and potentially propel the market toward the next significant resistance level at $48,000.
However, a bearish breakout could lead further down the drain, reaching $38,000 and then to $31,000 in the worst-case scenario.
Bitcoin displayed bearish signs with a 10% drop in the price before rebounding from the $40,000 support level. That said, analysts and traders are closely monitoring key support levels to assess the direction of Bitcoin’s price movement in the near term.
Interestingly, a surge in money inflow into Bitcoin has been observed, reaching levels unseen since the last cycle’s peak and occurring only five other times in history. According to popular BTC trader CryptoCon, the Money Flow Index reaching 91.57 suggests sustained momentum, possibly propelling Bitcoin to higher levels.
Likewise, on-chain data shows Bitcoin’s available supply is at historic lows, reflecting increased HODLer accumulation, much of it steaming from institutional investors.
As CryptoPotato reported, institutions largely favor Bitcoin, and BTC holdings doubled in the first three quarters of 2023, reaching 50% of portfolios in September, driven by positive market sentiment, expectations of regulatory advancements, and a potential Bitcoin ETF approval.