Key Takeaways:
- Bitcoin started a major downside correction from the $48,750 zone.
- BTC/USD traded below a crucial bullish trend line with support at $42,000 on the daily chart.
- The price could extend losses toward $36,750 or even $33,850 in the coming days.
New Delhi(Coinchapter.com): Bitcoin price declined after it faced rejection near $48,750. BTC/USD is now below the 50-day SMA and signaling a short-term bearish bias.
Bitcoin Price Starts Much-Needed Downside Correction
In the last Bitcoin price prediction, we discussed the importance of the $48,600 resistance zone. BTC did find it difficult to clear the stated resistance since it represented the 61.8% Fib retracement level of the key drop from the $68,958 swing high to the $15,822 low.
A high was formed near $48,750 and the price started a downside correction. There was a steady decline below the $45,000 and $43,500 support levels. Bitcoin also traded below a crucial bullish trend line with support at $42,000 on the daily chart.
The price settled below the 50-day simple moving average (blue) and the 23.6% Fib retracement level of the upward move from the $24,713 swing low to the $48,750 high.
Bitcoin bears even pushed the price below the $40,000 support zone. These are worrying signs in the short term for the bulls, dragging Ethereum and other altcoins lower as well. The current price action suggests a minor recovery wave above the $40,500 level.
However, the bears are likely to remain active near the broken trend line, $42,000, and the 50-day simple moving average (blue). If the bulls fail to clear $42,000, there could be another drop. Immediate support is near the $38,800 level.
The first key support seems to be forming near the 50% Fib retracement level of the upward move from the $24,713 swing low to the $48,750 high at $36,750. The main support sits at $33,850. A daily close below the $33,850 level could start a medium-term downtrend. The next key support is near the $30,350 level. Any more losses might send the price toward the $24,500 level.
Another Increase in BTC?
Conversely, Bitcoin might start a fresh increase from $36,750 or $33,850. On the upside, the first resistance sits near the $42,000 level.
The next key resistance for the bulls might be near the $43,200 zone. A close above $43,200 could open the doors for a move toward the $45,000 level. Any more gains may perhaps start a fresh rally toward $48,600 or even $50,000.
Overall, Bitcoin price is signaling a downside correction and might extend losses toward the $36,750 support. If BTC stays above $36,750 or $33,850, there could be a fresh increase in the coming weeks.
