Bitcoin Price Correction: Is a Breakout Imminent?
The cryptocurrency market has been abuzz recently, as Bitcoin continues its slow correction since its October peak. While the coin has experienced a 13% dip over the past 30 days and a nearly 4% decline in the past week, new on-chain signals suggest the correction could be nearing its end.
Short-Term Capitulation: Signs of a Potential Turnaround
According to CryptoQuant’s realized profit-and-loss data, short-term Bitcoin holders remain deeply in losses, a phenomenon often observed during the later stages of a corrective phase. This capitulation is further supported by HODL Waves, which measure Bitcoin holdings by age brackets. The cohort holding Bitcoin from one day to one week has seen a drastic reduction in their supply dominance, dropping from 6.2% in late November to just 2% by December 10. This sharp decline indicates heavy selling pressure, which typically marks the final stages of a market correction.
Exchange Outflows Signal a Bullish Opportunity
Another bullish indicator comes from the Exchange Net Position Change metric. Between November 27 and December 10, Bitcoin shifted from +5,103 BTC in inflows to a staggering -43,292 BTC in outflows, signifying that more coins are moving off exchanges. Historically, such large outflows have preceded significant rallies, as was seen in September before Bitcoin reached its all-time high of over $126,000.
Key Price Levels to Watch
Bitcoin’s price action on the daily chart reveals a symmetrical triangle pattern, which forms when buying and selling pressures slow at similar rates. A breakout in either direction could signal the next move, with $94,140 being the critical resistance level. If Bitcoin achieves a daily close above this mark, it could open the path to $97,320 and $101,850. Conversely, a close below $90,180 could weaken the bullish case, with $87,010 and $80,640 as the next support levels.
Enhance Your Crypto Strategy
To stay ahead in the volatile world of cryptocurrency, consider utilizing tools like the Ledger Nano X for secure Bitcoin storage. This hardware wallet ensures your investments remain safe even during uncertain market conditions.
Conclusion
Despite the recent correction, on-chain metrics like short-term capitulation and exchange outflows suggest Bitcoin may be setting the stage for a rally. However, a 4% breakout above $94,140 will be crucial for confirming the trend shift. Stay informed, do your research, and consult a financial advisor before making investment decisions.
