Posted:
- The price of Bitcoin has only increased marginally over the past 24 hours.
- The market indicators looked bearish, indicating a short-term price decline.
Bitcoins [BTC] The price has followed a somewhat sideways path in recent days as the value moved marginally. In the midst of this, an analyst recently posted a new analysis highlighting the key resistance levels witnessed by the king of cryptos in the recent past.
A look at Bitcoin’s sell signals
As mentioned above, AMBCrypto found that the price of BTC has followed a sideways path in the recent past as its value has increased by just 0.7% over the past 24 hours.
aAt the time of writing, BTC was trading at $43,012.40 with a market cap of over $842 billion. While that was happening, DanBTC916, an author and analyst at CryptoQuant, posted one analysis using one of the most important indicators for Bitcoin.
The analysis used the Mean Spot Exchange Inflows metric. To start, a spot exchange rate is the current price at which someone could exchange one crypto for another for delivery on the earliest possible value date.
The metric can be used effectively to identify sell signals for a crypto. The analysis also identified quite a few sell signals on multiple dates, such as October 2022, November 2022, February 2023 and most recently, December 20 and 23, 2023.
Source: CryptoQuant
Are there more resistance zones ahead?
Since the above analysis talked about past sell signals, AMBCrypto planned to look into this BTC‘s liquidation levels to understand whether the king of cryptos will witness more sell-off in the near term.
According to our analysis, Bitcoin liquidation witnessed a massive surge around $43,900.
Therefore, to trigger a bull rally, BTC must move above that level. If it succeeds, BTC will face new potential resistance near the $45,000 mark, as evidenced by the fluorescent lines on the liquidation heatmap.
Source: Hyblock Capital
Is your portfolio green? Check the BTC profit calculator
To check if BTC a bull rally may begin, we took a look at the coin’s daily chart. Our analysis showed that the price of BTC entered a tight zone, indicating that there are still a few slow-moving days ahead.
The MACD also showed a bearish crossover. Furthermore, both BTC’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) recorded a decline, indicating a red price chart at the end of 2023.
Source: TradingView