The daily chart of Bitcoin has shown three consecutive red candles for the first time since the first week of November, coinciding with the lead-up to Donald Trump's election victory.

Another similarity between the last time three or more red candles appeared on the daily chart is that Bitcoin retested the 50-day EMA.

With BTC's price down more than 15% from its all-time high, an analyst suggested that most of this downturn may have ended for the largest coin in the world.

1-day Bitcoin chart | Source: TradingView

Bitcoin is nearing the end of its correction, according to the expert's assessment.

With Bitcoin's price dropping below $93,000 on December 20, Captain Faibik, a well-known cryptocurrency trader, suggested that BTC's correction is nearing completion.

In a post on X, Faibik emphasized that BTC's current decline is due to strong bearish divergence between its price and the relative strength index (RSI) over the past month. Such divergences are often followed by a decline of 8% to 10%, considered a "healthy correction."

Faibik predicts that the price will bounce from the $94,000 range, as illustrated in the chart.

Crypto Faibik's 1-day Bitcoin analysis | Source: X.com

In contrast, Cold Blooded Shiller, an anonymous trader, expects a deeper correction for Bitcoin based on the same divergence pattern. Comparing BTC's current price action to January 2024, Shiller suggested that if a similar outcome occurs, BTC's sell-off could extend down to $85,000.

Meanwhile, Byzantine General, a futures market analyst, pointed out the continuous selling by spot-holding investors. The analyst stated:

"Currently, we are seeing a derivative gap as spot-holding investors are selling too much, causing the price to disconnect from the derivatives market."

In fact, Maartunn, an analyst at CryptoQuant, stated that this is the most significant selling activity on Coinbase since Bitcoin was priced at $66,000. The selling pressure is "relentless," as the price difference on Coinbase has dropped to a quarterly low.

Premium Bitcoin gap chart on Coinbase | Source: CryptoQuant

The actual loss of Bitcoin reached $28.9 million

With increasing selling pressure hour by hour, the actual loss volume has also peaked above the weekly average. Axel Adler Jr, an on-chain Bitcoin analyst, emphasized that BTC's actual loss over the past 5 days has reached $28.9 million, which is 320% higher than the weekly average in 2024. This $28 million level has only been surpassed 10 times this year.

The mid-term chart analysis of Bitcoin shows a break in the bearish structure (BOS). However, there is a clear invalidation point for the reversal if Bitcoin continues to close daily candles above $95,000.

As observed in the chart, the 4-hour candle established an immediate recovery above $95,000 after dropping to $92,777. For Bitcoin to invalidate the bearish sentiment, closing the daily candle above $95,000 is ideal.



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