The Bitcoin (BTC) price is now slowly falling below $ 19,000 after four unsuccessful attempts to break the $ 19,600 resistance level. In the short term, four factors indicate that a repayment is more likely than a net breach of a full-time amount close to $ 20,000. Traders and technical analysts are mostly wary of bitcoin price developments in the near future and seem to be waiting for BTC to set a clear support level or surpass the record.

There are four factors that enable a correction, and all of these factors can increase the selling pressure on Bitcoin, while at the same time reducing the buyer’s demand for Bitcoin in the foreseeable future. A fall in the BTC price together with the stock market may increase the tension around risky assets, including Bitcoin.

On December 8, the price of bitcoin fell sharply in a short period of time. At Binance, the price of bitcoin fell from $ 19,294 to $ 18,610 in just 12 hours. A pseudonymous trader known as “The Byzantine General” placed an order on Bitfinex for 857 bitcoins for $ 18,750, equivalent to $ 15.94 million. However, demand disappeared as the price approached $ 18,750, indicating fraud.

When the purchase order fell by $ 18,750, the level of support fell and Bitcoin eventually fell to $ 18,610 on the major stock exchanges. Almost two weeks ago, the $ 18,500- $ 18,600 series was a strong support area for BTC. If Bitcoin continues to fall below $ 18,500, traders say the $ 16,000 support level could be tested before Bitcoin’s next rally. Another pseudo-trader known as “Crypto Capo” said that a short-term downtrend could materialize below $ 18,500, possibly as high as $ 16,750.

The resistance zone $ 19,500- $ 20,000 is the most important obstacle along the way.
For traders, Bitcoin is currently a disadvantage, as it is far from the level of resistance and the main support area. So far over the past week, BTC has remained relatively comfortable above the $ 18,500 support level after three successful returns. But as retests continue in the same support zone, it becomes less convincing to buy or want BTC for $ 18,500.

Thus, a trader known as Salsa Tequila said that the ideal trade would be to either buy bitcoin with low support, say $ 16,000 or $ 17,000, or over $ 20,000. The trader said it makes sense to trade in the short term in the current price range of the BTC rally drastically above all-time highs or witness a deep correction.

Similarly, cryptocurrency trader Kurosh A.K. said a “good buyback opportunity” would emerge at lower support, focusing on the $ 18,300-18,400 series as a potential support area. However, the trader noted that some candles in the lower time frame need to be closed, such as 4 hours, to demonstrate greater clarity in the bitcoin price cycle, adding: “We are still waiting for 4 hours close, but it looks like we will lower, which will allow you to buy a product in the fall. ”

Miners sell bitcoins
According to CryptoQuant data, previously inactive miners are starting to sell bitcoins again. Especially for customers, analysts said that the Index of Miners has reached a new annual high. This indicates that miners are putting pressure on selling bitcoins, increasing the likelihood of further consolidation or a larger price drop.

In the cryptocurrency market, there are two main sources of pressure from sellers: minerals and exchanges. Network analyst Willie Wu previously explained that miners who sell bitcoins and exchanges that sell profits through commissions are the two biggest selling presses unparalleled in the market. With this in mind, miners continue to sell bitcoins while bitcoin is struggling below the high resistance level, making it difficult for a short-term breakout. Note from CryptoQuant:

The Mining Center Index, MPI, which has remained negative most of the year, recently reached a moving average of 1.5, a new record for this year. Given the historical patterns, this is not much for us to wait for the beef market to end, but it may be enough to calm things down in a short time. ”
AND investors do not buy
Long-term bitcoin holders who supply large amounts of bitcoin have stopped buying bitcoin in recent days. CryptoQuant analysts note that the old whales “want the price to fall, or at least they expect the price to fall”, based on data from the entire chain.

Whale groups on Whalemap, an analytical platform on the chain that tracks bitcoin whale activity, show a similar trend. On Dec. 7, Whalemap analysts said whale groups show three short-term support zones at $ 18,979, $ 17,651 and $ 17,170.

Whale groups are formed when whales gather or buy bitcoins at a certain level and do not move bitcoins. It basically shows where the whales last bought BTC and what price level they want. Since the BTC fell below $ 18,979 on December 8, whales may try to bet or buy in the last two support areas.

Source: CoinTelegraph

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