Market analyst Ali Martinez has identified the next pivotal Bitcoin (BTC) support levels to watch, as BTC consolidates within a parallel channel amid the latest drop from $43,000.
Ali disclosed this in a recent analysis of Bitcoin’s price movements. The seasoned analyst presented a 4-hour chart, detailing a major price drop recorded by BTC. Notably, Bitcoin recently witnessed three consecutive 4-hour losing candles.
The premier cryptocurrency collapsed by 2.06% within 12 hours today, slipping below the $43,000 price threshold. Amid the recently-surfaced bearishness, Ali confirmed that the asset maintains its position within a parallel channel.Â
Interestingly, Bitcoin slipped into this channel on Dec. 20, when it broke past the two pivotal psychological thresholds at $43,000 and $44,000. Following a rally to a high of $44,283, Bitcoin faced resistance that impeded a further upsurge.
Trading within the range of $42,500 and $44,398, BTC has remained within the parallel channel since Dec. 20. The recent dip triggered by bearish pressure attempted to push the token below the lower trendline. However, Bitcoin defended the support at $42,400.Â
Next Pivotal Bitcoin Support Levels
The token immediately rebounded after breaking below $42,400 to $42,150. The rebound essentially brought its value back within the channel. Ali suggested that the next support to focus on is the $42,400 price threshold. Breaching this level would be bearish for the token.Â
According to Ali, should Bitcoin witness a sustained decline after a breach of the $42,400 zone, the asset’s next support level would form at $40,700. The last time BTC saw the $40,000 level was on Dec. 4, when it registered an upward momentum to breach the price point.
However, Ali’s view is not entirely bearish. The market veteran also pointed out the possibility of a price resurgence that could lift Bitcoin from the claws of the bears. Ali asserted that if BTC registers a confident rebound, it could prepare it for a surge to $44,400.Â
Bitcoin currently changes hands at $42,694, down 1.93% over the last 24 hours. 24-hour trade volume comes in at $25,586,981,258. The market still awaits an approval of the much-anticipated BTC spot ETF and the upcoming Bitcoin halving next year to make a push toward a full-blown bull run.
Amid the current situation, on-chain metrics have slipped into favorable territories. Remarkably, the BTC Binary CDD currently reads 0, indicating that long-term holders have held onto their tokens. In addition, BTC reserves on exchanges have dropped to 2,034,671.31 tokens, indicating lower selling pressure.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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