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Bitcoin must stay above $43k for stronger rally, analyst says

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After an impressive eight-week rally, propelling Bitcoin (BTC) from $27,200 to over $44,000, the cryptocurrency is now facing a possible massive correction.

That’s according to analyst Justin Bennett. The “Daily Price Action” host expressed concern about Bitcoin’s current state, emphasizing the significance of staying above $43,300.

Meanwhile, rising network fees and debates over Bitcoin Ordinals and BRC-20 tokens add complexity to the crypto landscape.

Bitcoin is on the verge of correction

In a recent post on X, Bennett points out a less optimistic outlook for Bitcoin, stating that the BTC price is not looking good below $43,300.

A possible lower high forming and starting to weigh on the trend line support. The next stop is $38,000 on a sustained break.” He highlights the dollar firming up above the 102 support, suggesting potential risk-off scenarios if this trend continues.

As the price surges, network fees rise, triggering a renewed debate over Ordinals and BRC-20 tokens. Bitcoin Core developer Luke Dashjr aims to address this by closing a loophole allowing blockchain spamming.

Dashjr’s efforts have divided the crypto community, with some skeptical miners supporting the proposed changes. However, Dashjr remains steadfast, dismissing Bitcoin-based NFTs as “fraud.”

Bitcoin (BTC) witnessing rising fees

In the same vein, the Bitcoin mempool is currently battling severe congestion, with the number of unconfirmed transactions recently rising above 249,000. The surge in Ordinals inscriptions contributes to this congestion, as they represent over 50% of the daily transactions on the network.

On-chain fees have been on the rise, reaching an average of $27.55 per transaction on Dec. 6.

Glassnode’s lead analyst, “Checkmate,” underscores the discontent caused by inscriptions, making up 50% of daily transactions but less than 10% of block data.