Bitcoin Must Cross This Level to Invalidate the Short-Term Bearish Scenario

After a sharp correction on February 23 below $45,000, Bitcoin (BTC) was able to recover the gains it lost on February 24. However, the premier cryptocurrency has yet to break above an important resistance level in the $56,000 area.

Technical analysts think that if Bitcoin fails to pass the $51,600 resistance in the short term, the chances of a correction will increase.

BTC/USD 4-hour price chart (Bitstamp). Source: TradingView

Key level $ 51,600

According to crypto analyst Josh Orschwitz, $51,600 is currently acting as a strong resistance. He explained that it would be important for Bitcoin to break through $51,600 in order to retest the record high of $58,000 again and start rising towards $62,000.

This means that if Bitcoin rises above $51,600, it will nullify all bearish scenarios for Bitcoin in the short term.

If this level is not exceeded, however, the support levels around $42,000 can be tested.

The $42,000 support is the key level as it was the peak of the previous rally. Notably, Bitcoin price peaked at $42,085 on Binance on January 8. However, Bitcoin’s testing of $42,000 would not be necessarily bearish beyond the short term.

What levels do Bitcoin whales support?

According to Whalemap analysts, Bitcoin whale loaded their wallets at $48,500 and $46,500, and these levels could support BTC.

“The current situation is similar to what we experienced at $29,000,” Whalemap explains. Moreover, $46,532 could be a new $29,000. In January, before the rally continued, $29,000 support had worked.” They also added:

Another important level to watch is $55,400. Going above this level will be a good sign.

Whale cluster levels. Source: Twitter/@whale_map

Bitcoin usually seeks liquidity after a long period of consolidation. In other words, a fall in Bitcoin and more buy orders at lower prices could eventually lead to a new price rally.

Cryptocurrency trader, Salsa Tekila expects $41,000 to be the support level and $54,000 act as resistance in the medium term. “Unless there is a big event, we’ll be swinging around these two,” he wrote.

Bitcoin has tested $44,800 support in the last 72 hours but has failed to push BTC above $51,600.

As a result, Bitcoin prices could test again at $44,800 or could return to the lower support of $42,000. If Bitcoin falls again, the ideal scenario would be to maintain a $44,800 support area and then resume the uptrend.

If you have any questions and comments on Bitcoin today, use the form below to reply.


© MarkStevenson for Commodity Blog, 2021. | Permalink | No comment |
Published under: Bitcoin, Forecasts

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