Bitcoin Begins Correction After Rejection At $45,000 – What Next?
Bitcoin has fallen $2,500 to return to near $43,000 after hitting a new multi-week high of $45,500 on Feb. 8, many experts are warning of the first major correction of Bitcoin week.
BTC/USD 1 hour frame chart | Source: TradingView
I hope $42,000 will be withheld
At the time Wall Street opened, Bitcoin continued to see plenty of volatility as bulls eyed potential support should the decline continue.
Previously, these support levels included both $40,000 and $41,000 with some in the $30,000 to $40,000 region.
However, for popular trader Muro, $42,000 is a key level to hold as a floor to transition into bullish sentiment.
“Either BTC’s pullback is negligible and bounces to $51,000, or I wouldn’t be surprised if the price pulls back completely. There is still some upside potential as long as $42,000 holds.”
An accompanying chart shows that a dip into the $38,000 region is likely to be an attractive entry point for investors, but that in itself will not bode well for market strength.
BTC/USD price chart | Source: Muro/Twitter
Meanwhile analyst Michaël van de Poppe to say Bitcoin faces “critical” resistance.
“In that regard, I don’t think we’re going to break out and have a correction right away -> not a good ending for altcoins.”
At the time of writing, $43,000 has been retested multiple times as trading failed to spark fresh momentum on Wall Street.
Bitcoin flow in 400 days
Putting bitcoin on the longer timeframe, we still find that volatility is very low at the current moment, elevating the recent price action to over 400 days as part of a consolidation phase that has now taken place over the past few weeks.
“In my opinion, Bitcoin has been in a bull market and sideways consolidation for over a year. No bear market, all consolidation as you can clearly see below,” market commentator Miles Johal to write along with a diagram showing the structure.
“Once the range is broken, the next step will be huge. That’s bitcoin anyway.”
BTC/USD chart | Source: Johal Miles/Twitter
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