Bitcoin Correction ‘Almost Over’ As Perceived Losses Increase Above Weekly Average
Bitcoin (BTC)'s daily chart produced three consecutive red candles for the first time since the first week of November, coincidentally in the lead-up to Donald Trump's US election victory.
Another similarity between the last time three or more red candles appeared on the daily chart is that Bitcoin retested the 50-day EMA level.
Bitcoin 1-Day Chart. Source: Cointelegraph/TradingView
With BTC's price down more than 15% since its all-time high, one analyst said most of the price drop could be attributed to the largest cryptocurrency.
According to an analyst, Bitcoin's correction is “coming to an end soon.”
As the price of Bitcoin fell below $93,000 on December 20, independent crypto trader Captain Fibic said that BTC's correction is nearing its conclusion.
In X's post, the trader highlighted that BTC's recent decline was due to a large bearish divergence between its price and the Relative Strength Index (RSI) over the past month. Such deviations are usually followed by an 8 to 10% failure, which is considered a “healthy reset”.
Bitcoin 1-Day Analysis by Crypto Faibik. Source: X.com
As indicated on the chart, the trader expects the price to drop below $94,000.
Conversely, Cold Blooded Shiller, an anonymous crypto trader, expects a deeper return for Bitcoin based on the same divergence pattern. Comparing BTC's current price action to January 2024, the trader said BTC sales could drop as low as $85,000 if similar results are seen.
Meanwhile, Byzantine General, a futures market analyst, highlighted the steady sell-off by placeholders. The analyst said.
“We've got a real premium right now because spot is so oversold that it's disconnecting from the exchange.”
In fact, CryptoQuant analyst Martun said this is the most significant Coinbase selling activity since Bitcoin was bought at $66,000. The selling pressure is “unrelenting” as Coinbase's premium has fallen to a quarterly low.
Bitcoin Coinbase Premium Gap Chart by Maartunn. Source: X.com
Related: Bitcoin Well Support With New BTC Price Warning Includes $60K Zone
Bitcoin's realized loss reached $28.9 million
Realized losses rose above the weekly average as selling pressure increased hourly. Axel Adler Jr., Bitcoin onchain analyst, realized that BTC has lost $28.9 million in the last 5 days, 320% higher than the weekly average in 2024. 28 million mark was passed only 10 times this year.
Bitcoin Realized Loss Chart by Axel Adler Jr. Source: X.com
Analyzing Bitcoin's mid-term chart, it revealed a breakout of structure (BOS). However, if Bitcoin continues to close a daily candle above $95,000, there is a clear rejection for a reversal.
Bitcoin 4-hour chart. Source: Cointelegraph/TradingView
As shown on the chart, the 4-hour candle made a quick recovery above $95,000 after falling to $92,777. For Bitcoin to break the bearish sentiment, a daily candle above $95,000 is ideal.
Related: Bitcoin moves to $92K in ‘best dip buy' as PCE boosts crypto
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
