Posted:
- Bitcoin liquidations rose as the price approached the $44,000 mark
- Market indicators remained largely bearish for Bitcoin
As a market leader Bitcoin [BTC] has always played an important role in shaping the rest of the crypto market. For example, when the price of BTC dropped significantly in the last few hours, other cryptos simply followed suit.
However, this fuels an important question: should investors view this as an opportunity to buy more BTC?
The price of Bitcoin is falling again!
After a comfortable rally, Bitcoin finally registered a price drop. According to CoinMarketCapAt the time of writing, BTC had fallen over 4% in the last 24 hours alone. In fact, WhaleWire revealed that BTC wiped out an entire week’s worth of gains in just 6.4 minutes.
#Bitcoin wiped out an entire week’s worth of gains in 6.4 minutes.
People are slowly becoming worried and the moon boys are becoming quiet again – but we haven’t seen anything yet.
This is just a little teaser for what’s to come. The full scale of this carnage will be a thousand times greater.
Do not…
— WalvisWire (@WhaleWire) December 11, 2023
At the time of writing, it was trading at $42,048.39 with a market cap of over $822 billion. The bad news was that the king of crypto’s trading volume rose while its price fell, which is a common bearish signal.
AMBCrypto then looked at BTC liquidation levels to better understand at what point the coin’s price dropped. According to our analysis, BTCThe company’s liquidation level rose as the price reached the $44,000 mark. During that time, investors started selling, causing the price to drop, effectively creating a bearish market situation for the rest of the crypto market.
Source; Hyblock Capital
The prevailing downtrend also had an effect on crypto’s social metrics. For example, BTC’s social volume decreased slightly. Furthermore, weighted sentiment fell, meaning negative sentiment was dominant across the market.
Source: Santiment
Should Investors Buy the Dip?
Although the price of the king of cryptos has fallen, this could open the right window for investors to accumulate more BTC. Santiment also recently highlighted the same fact. The crypto analysis platform claimed,
“Crypto has experienced its fastest decline in four months as markets have corrected and caused mild concerns among traders. There is a high level of buythip calls, which usually means there is a bit of overzealousness and FOMO at these low prices.”
Read Bitcoins [BTC] Price prediction 2023-24
Therefore, it is worth looking at Bitcoin’s daily chart to see if investors should accumulate BTC at all.
According to AMBCrypto’s analysis: BTC‘s MACD clearly projected the possibility of a bearish crossover. The Bollinger Bands suggested that the coin’s price was also in a high volatility zone. On the contrary, the Chaikin Money Flow (CMF) remained bullish as it gained momentum on the charts.
Source: TradingView