Despite the optimism surrounding potential approval of Bitcoin spot ETFs by the SEC, Bitcoin’s price encountered a significant rejection, resulting in a 17% decrease. However, as the cryptocurrency approaches a critical support area, there’s potential for a new upward movement. The daily chart shows Bitcoin’s failed attempt to surpass the $48,000 resistance, leading to a 17% fall towards the critical support zone, which includes the rising channel’s mid-line and the key 200-day moving average, acting as strong support for Bitcoin buyers.
If the pullback continues, the cryptocurrency’s price could find support around $39,000, possibly triggering a new upward trend. However, an unexpected break below the 200-day moving average could lead to a cascade of sell-stop orders and a prolonged compression event.
On the 4-hour chart, the rejection at the $48,000 resistance persists, with the price breaking below the lower boundary of the rising flag, indicating sellers’ presence. A continued retest towards the flag’s lower boundary could complete a potential pullback.
Such a pullback could pave the way for Bitcoin’s short-term downward movement, targeting the $39,000 static support range. Nonetheless, Bitcoin’s medium-term outlook may point to consolidation within the critical price range bounded by the $48,000 resistance and $39,000 support. A successful exit from this zone could shed light on the cryptocurrency’s next bullish trend. Consequently, there’s a possibility for the price to resume its upward trajectory after completing the current correction phase.