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(Kitco News) –
Crypto trended lower to close an eventful and volatile week of trading after Bitcoin (BTC) breached the $42,000 level of support on Friday morning, leading to a broad selloff in the digital assets sector.
Bulls pushed the top crypto up to the 43,000 resistance level twice on Thursday evening, and after a final attempt to breach resistance shortly after 4:00 am EST, the bears took over and BTC began a steady decline throughout the European session.
Bitcoin finally broke below the 42k level at around 10:30 am EST.
Altcoins followed the top cryptocurrency lower during Friday’s trading, with the top tokens declining between 1.00% and 3.5% on the day. Solana (SOL) was the exception, gaining around 1.25% after a dramatic intraday rally that saw up 6% on the session before selling off along with the broader digital currency market.
Even as tokens trended lower, many analysts and traders noted that the crypto market remains in an uptrend overall.
“DIPS ARE HEALTHY TO SEE,” wrote analyst Crypto Tony in a tweet. “Only begin to worry if we break into a bearish market structure.” He said Bitcoin would need to drop below $38,000 to break the current bull market trend.
TWEET CHART 1
Crypto analyst Rekt Capital noted on X that the current bull run has completely erased all of BTC’s price declines from last year.
This year has completely engulfed the downside from last year
A lot can change in a year$BTC #Crypto #Bitcoin pic.twitter.com/l7WBcr1QdT
— Rekt Capital (@rektcapital) December 15, 2023
And Crypto Chiefs posted that Bitcoin’s previous range low of $43,500 continues to act as resistance.
“Despite a big wick down to the 4hr demand at $41.2k, the 4hr candle recovered to close back above the supply order block, which is what we were looking for yesterday to confirm support at $42.4k,” they wrote, sharing the following chart.
“This is giving us some choppy price action so far today, and the safest thing to do may be to wait for one of these two levels to break,” the analyst added. “There is a lot of liquidity at the $43.5k area, so a good chance the price is drawn to that soon.”
After hitting a session low of $41,686.27 just after 10:45 am EST, BTC stepped steadily higher for the remainder of the day, though it remained in negative territory. At the time of writing, Bitcoin is down 1.93% on the session, last trading at $42,204.15.
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