According to Cointelegraph: Following Bitcoin's considerable one-day losses in 2023, the cryptocurrency is regaining some stability, maintaining a $40,000 support level and pulling up from lows of $40,200 seen after the Dec. 10 weekly close. The information comes from Cointelegraph Markets Pro and TradingView data.
BTC's recent pause in gains has activated new key resistance and support levels. Upcoming volatility triggers are anticipated in light of the U.S. macro data releases starting Dec. 12, including the Federal Reserve interest rate decision and Chair Jerome Powell's remarks the following day.
Although the 7.5% BTC price dip following the weekly close was a blow to late long investors, market consensus agreed that the correction was necessary to reset the fervent crypto sector. According to John Bollinger, creator of the Bollinger Bands volatility indicator, the pullback was due as unchecked upside typically results in a potent reaction.
Traders and analysts are monitoring popular BTC price targets, especially in the $40,000 vicinity. Based on the BTC/USD 1-day chart with Bollinger Bands, BTC bounced to the middle band on daily timeframes, positioning the correction as a potential cause for optimism.
Analysts have recognized new support at $38,500, interestingly lower than the $40,000 level and the week's bottom. “Institutional-Sized” bids seem to be returning, although it remains unclear whether these are genuine accumulations or a strategy of buying the dip and selling the rip.
Given the pending Federal Rate Hike decision and potential volatility in reaction to Jerome Powell's speeches, market sentiment seems to be leaning toward buying the dip & selling the rip.
Areas to watch are at $38,000–$40,000 and $44,000–$45,000, respectively. Additional key support identified by trader Ali falls in the range of $37,150 and $38,360, backed by a significant amount of BTC held by multiple addresses. He also pointed out resistance at $43,850 and $46,400.
