NEW DELHI (CoinChapter.com) — Should you buy Bitcoin? The BTC price is struggling to stay above $41,000. BTC/USD might spike toward the $38,500 support before the bulls take a stand.
Bitcoin Price Approaches Breakdown Support
In the past buy Bitcoin prediction, we saw a steady increase above the $42,000 resistance. BTC even climbed above the $43,500 resistance before the bears appeared. It seems like the bulls struggled close to $45,000. A high was around $44,699, and the price started a downside correction.
There was a move below the $43,500 and $43,200 support levels. The price even tested the 23.6% Fib retracement level of the last key increase from the $26,562 swing low to the $44,699 high.
Bitcoin’s decline dragged Ethereum, Solana, AVAX, and a few other cryptocurrencies lower. BTC is now testing a crucial ascending channel with support at $41,000 on the daily chart.
If there is a downside break and a close below the channel support, the price might extend losses. The next major breakdown support is near the 50-day simple moving average (blue) at $38,500. It is also a multi-touch level and the last breakout zone.
Bitcoin bulls could take a strong stand near $38,500. If they fail to defend the 50-day simple moving average (blue), the price could take a hit. In the stated case, the price could decline toward the 50% Fib retracement level of the last key increase from the $26,562 swing low to the $44,699 high at $35,630. Any more losses might send the price toward the $31,500 support zone.
Time to Buy Bitcoin?
Conversely, Bitcoin could remain supported near $38,500 and start a fresh increase. On the upside, the first resistance sits near the $42,500 level. The next key resistance for the bulls might be near the $43,200 zone.
If the bulls pump BTC above $43,200, the price could drift toward the $45,000 level in the coming days. Any more gains could open the doors for a move toward the $48,000 level.
Overall, Bitcoin price is correcting gains and approaching key supports such as $41,000 and $38,500. If BTC remains stable above $38,500, there could be a fresh rally. If not, it might start another decline toward the $35,630 support.
