This Pattern Has Emerged Three Times Since Late 2023, Triggering BTC Price Corrections

Since late 2023, Bitcoin has displayed a recurring price pattern that has resulted in significant corrections. Recently, Bitcoin dipped below crucial support levels, reaching lows of $98,951, testing both its 365-day simple moving average (SMA) and exponential moving average (EMA), which stand at $102,055 and $99,924, respectively. This decline coincides with a reduction in holdings by long-term investors, who sold off approximately 300,000 BTC since July 2023. This pattern of profit-taking has occurred three times since the end of 2023, typically leading to price drops of 10% or more following periods of strong price increases. Notably, the last significant sell-off came during the November 2024 price rally following the U.S. elections. Analysts are closely watching these moving averages as they continue to guide market sentiment and determine Bitcoin's short-term direction amidst ongoing volatility.

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