Difference between Web 1.0, 2.0, 3.0 and 4.0 - Bitcoin Price Levels to Watch as Bitcoin Taps $42K
Buy the dip, sell the rip? BTC price levels to watch as Bitcoin taps $42K

Bitcoin (BTC) faces an uphill battle to revive its uptrend after its biggest one-day losses of the year. The largest cryptocurrency is still attempting to recover the ground lost after dropping to a low of $40,200 after the Dec. 10 weekly close, according to the data from Cointelegraph Markets Pro and TradingView.

The pause in BTC’s relentless gains — which some argued was necessary — has created new key support and resistance levels. The next few days could be full of potential volatility triggers, starting with the U.S. macro data releases on Dec. 12 and the Federal Reserve interest rate decision and commentary from Chair Jerome Powell the day after.

This could be a showdown with implications beyond the crypto markets, and Cointelegraph takes a look at some of the popular BTC price lines in the sand that traders and analysts are now watching as Bitcoin holds on to the $40,000 mark.

Difference between Web 1.0, 2.0, 3.0 and 4.0

The difference between Web 1.0, 2.0, 3.0 and 4.0 is significant. Web 1.0 was a static, passive experience, while Web 2.0 was an interactive platform that allowed users to interact with each other. Web 3.0, also known as the Semantic Web, is an intelligent web that uses artificial intelligence and machine learning to make decisions. Web 4.0, or the Internet of Things, is an interconnected network of physical objects that communicate with each other.

Bollinger Bands: BTC bounced “where it was supposed to”

The 7.5% BTC price dip which followed the weekly close offered a reset for crypto markets, as the unchecked upside had the potential to result in a violent reaction the longer it continued.

John Bollinger, creator of the Bollinger Bands volatility indicator, commented on X (formerly Twitter) that it was “very overextended, so a pullback was due”. His accompanying chart showed the forcefulness of the latest upside within the context of broader recent BTC price strength.

On daily timeframes, the dip took Bitcoin straight to the middle band within the Bollinger channel, which is a textbook move and a sign of optimism going forward.

Bollinger had previously warned of increasingly constrictive conditions, which could be a sign of a local top in advance.

Large Bitcoin buyers may play “buy the dip, sell the rip”

Analyzing the activity of large-volume traders, some commentators observe positive signs after the dip’s impact on open interest.

Sharing a screenshot of the BTC/USDT order book liquidity on the largest global exchange Binance overnight, trading resource Material Indicators identified a new band of support at $38,500.

While lower than both $40,000 and this week’s bottom, Material Indicators suggested that “institutional sized” bids could now be returning — but with a possible caveat.

The accompanying analysis concluded that “it’s not yet clear whether they are legitimately starting to accumulate at these levels or just buying the dip and selling the rip.”

“After all, we have a Fed Rate Hike decision coming this week and #JPow’s speeches are typically good for some web 3.0 volatility,” it added.

Continuing on Dec. 12, popular trader Skew also examined the likelihood of manipulation among larger players.

“Seeing a bit of change in the mindset of large spot players whom were actively chasing price before,” he told X followers about the Binance order book.

Skew identified the key BTC price areas to watch at $38,000-$40,000 and $44,000-$45,000, respectively.

Analyst: Bitcoin will greet yearly close in “new range”

Popular trader Ali noted the range around $38,000 as a major support against major downside. According to him, there is a solid support between $37,150 and $38,360 which is backed by 1.52 million addresses holding 534,000 $BTC.

Michaël van de Poppe, founder and CEO of MN Trading, also highlighted the floor zone at $36,500. He believes that Bitcoin will enter a “new range” by the end of 2023.

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