NEW DELHI (CoinChapter.com) — Bitcoin price corrected sharply from the $44,700 zone. BTC/USD is holding the key uptrend support at $38,500 and might start another increase.
Bitcoin Price Remains In Strong Uptrend
In the past Bitcoin price prediction, we discussed high chances of a move above the $40,000 resistance. The BTC/USD pair gained bullish momentum and broke many hurdles near $40,000. There was a steady 10% increase, and the price even cleared the $43,200 resistance.
Finally, it traded close to the $45,000 resistance. A new multi-month high was formed near $44,699 before the bears appeared. Recently, there was a sharp decline below the $44,000 and $43,000 levels. It dragged most altcoins lower, including Ethereum, Solana, Cardano, and BNB.
There was a drop below the $42,000 support. Bitcoin tested the 50% Fib retracement level of the upward move from the $34,779 swing low to the $44,699 high.
The recent drop of over 8% seems to be a profit-taking move ahead of the US CPI release and the interest rate decision. However, BTC is still well above the 50-day simple moving average (blue). The price is also above a major bullish trend line with support at $38,800 on the daily chart.
Bitcoin tested the $40,000 support zone and is currently recovering losses. The current daily candle is signaling trend exhaustion, but many key supports waiting to provide support. If there is a fresh increase, the price might face resistance near the $42,880 level.
On the upside, the first resistance sits near the $44,000 level. The next key resistance for the bulls might be near the $45,000 zone. If the bulls pump BTC above $45,000, the price could drift toward the $46,400 level in the coming days. The next major stop for the bulls could be $48,000.
Are Dips Limited in BTC?
If Bitcoin price fails to resume its rally above the $44,000 zone, there is a risk of more downsides. Immediate support is near the $40,800 level. The first major support is near the $40,000 level.
The main uptrend support sits near the trend line and the 50-day simple moving average (blue). It is close to the 61.8% Fib retracement level of the upward move from the $34,779 swing low to the $44,699 high.
A close below the trend line and then $38,500 might increase selling pressure. In the stated case, the price may perhaps decline toward $35,000. Any more losses might open the doors for an extended downside correction toward the $31,500 level.
Overall, Bitcoin price is correcting gains from the $44,700 level. If BTC remains stable above $40,000 and $38,500, there could be a fresh rally. If not, it might start another decline toward the $35,000 support.
