Bitcoin Price Risks Falling To $40,000 If It Breaks Below This Level: Analyst
Bitcoin price fell today after traders liquidated their longs due to sky-high funding rates, suddenly changing the positive sentiment to negative. A popular analyst predicted that BTC price can still slip to $40,700 if it breaks below the key support level. The price currently trades near $42.6K. Will we see a further pullback?
Bitcoin Price At Key Inflection Point
Popular analyst Ali Martinez in a post on December 26 warned that Bitcoin is consolidating in a parallel channel since it rallied above $40,000 mark in November. This puts all focus on the $42,400 support level, a key inflection point for determining further price direction.
He predicts a sustained drop below $42,400 could take BTC price to $40,700. On the other side, a rebound from the support level can help renewed upside momentum toward $44,400.
CoinGape reported that funding rates going crazy today. The crypto market saw $40 million longs liquidated within just an hour. In the past 24 hours, 70,611 traders were liquidated and the total liquidations is at $170 million, with longs accounting for $105 million.
Skew, a popular trader, revealed that “clips of around 150-200 BTCs have been cleanly sold into price” on Binance Spot. He suggests keeping an eye on $42.7k. If BTC and ETH can hold their lows, will be looking at strong altcoins for some quick scalp trades.
Also Read: Billionaire Mark Cuban Offloads Polygon (MATIC) Holdings To Coinbase, Price Fell 5%
BTC Under Pressure
Traders expect a Santa Claus rally this week, but there is also a key event of yearly options delivery. Along with this sentiment, a potential approval of spot Bitcoin ETF by the US SEC is also on the card. Meanwhile, spot Bitcoin ETF issuers must submit filings with said changes before the Dec 29 deadline.
BTC price fell from a 24-hour high of $43,765, with the price currently trading at $42,623. Moreover, trading volume has increased by 38% in the past 24 hours, indicating interest among traders. It happens as BTC OI-weighted funding rate jumps significantly higher.
Also Read: Bitcoin Evangelist Fred Krueger Calls Solana Innovations ‘Pure Science Fiction’
- CZ Hints at ‘Uptober’ Bitcoin Rally Following Green September
- BlackRock Now Holds 3.8% of Bitcoin Supply; Bloomberg Analyst Explains Why It’s ‘Extraordinary’
- KuCoin Secures ISO 27701 Certification, Boosting User Trust and Privacy
- Breaking: SEC Moves To Allow On-Chain Stock Trading Alongside Crypto Amid Tokenization Push
- Analyst Eyes Solana ATH as 21Shares’ SOL-Focused Jupiter ETP Launches on Swiss Exchange
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
- Ethereum Price Eyes $8,600 As Institutions And Whales Double Down
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data
- XRP Price Prediction: How XRP Could React After October 2025 SEC ETF Decisions
- Aster Price Prediction as US President Adds $110M Worth of Tokens to His Portfolio
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
