Bitcoin’s (BTC) price has been attempting to regain support above $40,000 in the past 24 hours after the selloff recorded earlier this week. The heightened crypto price volatility has resulted in more than $305 million liquidated from leveraged trading in the past 24 hours.
Notably, more crypto traders are eager to buy the Bitcoin dips in preparation for the macro bull market that is set to be triggered by the upcoming halving in April this year. Moreover, the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has significantly changed the entire crypto dynamics, with the demand rising daily.
Crypto Traders on a Bitcoin Selling Spree
After experiencing a significant resistance level of around $44.5k in the past few weeks, Bitcoin’s price is well primed for a market correction soon.
The bearish outlook is bolstered by the recent heightened selling volume pressure from short-term holders (STH) and Bitcoin miners trading the approval of spot ETFs in the United States as a sell-the-news event.
Additionally, Grayscale’s GBTC has recorded a cash outflow of more than $3.2 billion since the approval of spot Bitcoin ETFs on January 10, thus adding to the bearish pressure.
What Next for Bitcoin Price?
Despite the weekly golden cross between the 50 and 200 Moving Averages (MA) invalidating the 2022/2023 bear market outlook, Bitcoin price is faced with short-term bearish sentiments. According to a popular crypto analyst, Ali Martinez, Bitcoin price will eventually trade around $33k if the indicator consistently closes below $38k in the coming weeks.
With the weekly Relative Strength Index (RSI) falling below the 70 level again, Martinez expects Bitcoin price to find solid support around the weekly 0.5 Fibonacci retracement level.
