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.

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’

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.