The price of Bitcoin (BTC) has, for the most part, continued to trend horizontally without exhibiting any notable volatility as the year comes to a close. And despite the fact that things have settled down on the cryptocurrency market, the repercussions of the failure of FTX are still being felt throughout the sector as a whole.
Will Bitcoin (BTC) Price Dump?
According to a crypto trading analyst, who goes by the pseudonym Rekt Capital on Twitter, noted that a Bearish Engulfing (BE) candlestick was getting formed on Bitcoin’s yearly chart.
Read More: Ripple’s XRP Price In Danger Zone, Will It Go Up Or Crash Down Harder?
However, in order for this BE formation to be fully validated, BTC needs to conduct a yearly close below $14k in order to confirm a breakdown. Before that point, the bearish candlestick cannot be established.
#BTC is forming a Bearish Engulfing candlestick formation on the Yearly chart
But for this BE formation to fully validate, $BTC would need to perform a Yearly Close below ~$14k (black) to confirm a breakdown
Until then, the bearish candlestick is not confirmed#Crypto #Bitcoin pic.twitter.com/uZYBkcw3Yz
— Rekt Capital (@rektcapital) December 31, 2022
Crypto Faces Another Sell Pressure?
In another major development, extensive research into crypto exchange’s netflow and historical indicators, show a number of prominent hypotheses. According to the data, the netflow will eventually become positive once it advances closer and closer to zero.
This results in a lower number of buyers and a greater number of sellers. It is likely that at the same time that it turns positive, a local peak will be observed, followed by an increase in the amount of selling pressure on the future market. This can lead to a continuation of the downward trend and the loss of support that is currently in place.
As things stand, the Bitcoin (BTC) price is currently being traded at $16,592 This represents an increase of 0.39% on the day, in contrast to a decline of 1.54% during the week as per crypto market tracker CoinMarketCap.
Also Read: Top 10 DeFi Lending Platforms In 2023