Bitcoin Selling Continues Ahead of Year End

Correction Lower ContinuesBitcoin bulls are starting the final full trading week of the year with a sense of caution today as BTC futures continue to trade lower. The move, which appears linked to profit taking ahead of year-end, has seen the market turning back down towards the December lows around 40435. However, another reason for the sell-off looks to be the continued unease over high transaction fees. Fees are now back up record high levels last seen in April 2021. One view is that the current correction will continue lower until fees fall to such a level that demand is encouraged once again.Bullish Bitcoin OutlookBeyond the current market dynamics, the outlook for Bitcoin remains bullish across the start of 2024. With the Fed now widely expected to cut rates in H1 2024, the SEC expected to announce initial approvals on spot-BTC ETF applications and the April 2024 Bitcoin halving event ahead, there are many reasons that we might see a fresh move higher in BTC. As such, the current pullback might simply offer better entry levels for longer-term players looking to position for next year.Technical ViewsBTCThe failure at the 45520 level has seen the market reversing lower with price now once again retesting the 40345-level support. This is a key area for BTC with a break below there opening the way for a deeper push down to 37030. While this support holds, however, focus remains on a continuation higher with a break of 45520 the first objective for bulls early next year.