The Bitcoin (BTC) price continues to fluctuate between $ 48,000 and $ 51,000 with no way to break through the $ 51,600 resistance level.
If Bitcoin struggles to cross the $ 51,600 resistance zone in the near future, technical analysts say the likelihood of a correction increases.
$ 51,600 is the main level worth looking at
According to Josh Olshevich, a cryptocurrency trader and technical analyst, the $ 51,600 level currently serves as a strong resistance level.
He explained that in order for Bitcoin to test its full-time high of $ 58,000 and begin a potential rally around $ 62,000, it must empty over $ 51,600.
Therefore, a meeting above $ 51,600 is a clear reversal point for any short-term bearish scenario for Bitcoin.
The lack of a breakout in the near future could lead to a bearish test of the lower support areas, which are around $ 42,000. He said:
“If 4 hours are broken, get ready for the fact that more calls of Über calls in the downstream direction will start to grow by 36.7 thousand. At the same time, I will offer a daily quota for Kijun of 42 thousand people. Alternatively, if $ BTC exceeds the 4-hour cloud at 51.6k, I will try ATH again in a 58k reversal test, R3 at 62k annually, with a PF diag macro test of 70K and an annual 80k R4 reversal test. Seasonality indicates that we are heading towards neutral / sidebands in March and then hit the higher targets in the second quarter.
The $ 42,000 support zone is a key level as it marks the peak of the previous rally. Bitcoin peaked at $ 42,085 on Binance on January 8, followed by a sharp correction.
However, Bitcoin’s decline to $ 42,000 to test the previous peak as a support area will not necessarily be bearish after a short period.
Whale groups show similar levels of support
Furthermore, analysts at Whalemap noted a significant inflow of funds to the whale portfolios of $ 48,500 and $ 46,500, which in their opinion should provide some support to BTC.
They explained that “the current situation is similar to the one we had with 29 thousand.” Furthermore, the $ 46,532 level may now be the “new $ 29,000 level” held in support of the previous correction in January before the rally continued. They added:
$ 55,400 is also an important level to watch out for. Going back to the top would be a good sign
Whale pool levels. Source: Twitter / @whale_map
Most compelling case for Bitcoin’s short-term fall
Bitcoin tends to seek liquidity after a long consolidation, which means it may slip to fill long orders in lower support areas, which could eventually trigger a new rally.
A trader with the pseudonym “Salsa Tequila” supported this view. He said there is a large support area of $ 41,000, followed by resistance of $ 54,000. He wrote:
“What I currently tolerate from BTC in the medium term: 1) support of around 41 thousand dollars. 2) resistance of about 54 thousand dollars. Depending on the context, I could create volatility in these two areas.
Bitcoin has tested the support level of $ 44,800 over the last 72 hours, but it was not enough to push BTC above $ 51,600.
This trend could cause the Bitcoin price to fall again to $ 44,800 or to the lower support level of $ 42,000.
The ideal scenario would be that Bitcoin had its support zone of $ 44,800, if it falls again, it stabilizes as a macro support level and rises again.