The price of Bitcoin (BTC) remains between $ 48,000 and $ 51,000 and cannot leave the resistance level of $ 51,600.
If Bitcoin struggles to cross the $ 51,600 resistance area in the short term, technical analysts say the likelihood of a correction increases.
BTC / USDT 4-hour price chart (Binance). Source: TradingView
$ 51,600 is the main level to watch
According to Josh Olszewicz, a cryptocurrency trader and technical analyst, the $ 51,600 level is currently acting as a strong resistance level.
For Bitcoin to retest its all-time high of $ 58,000 and initiate a potential rally towards $ 62,000, it needs to go neatly above $ 51,600, he explained.
Therefore, a rally above $ 51,600 is the definite invalidation point for any short-term bearish scenario for Bitcoin.
The short-term failure could result in a bearish test of the lower support areas, which is around $ 42,000. He said:
“If 4h goes down be prepared for some super bearish calls popping up at 36.7,000. In the meantime, I’m offering the daily Kijun at 42,000. If $ BTC breaks at 51.6,000 over 4h cloud, I like ATH retest at 58,000 , R3 Annual Pivot Test at 62,000, Macro PF Diag Test at 70,000, R4 Annual Pivot Test at 80,000, Seasonality suggests we go neutral / sideways through March and then higher in the second quarter after those Grab targets. “
The USD 42,000 support area is a key level as it marks the top of the previous rally. On January 8, the price of Bitcoin on Binance hit a high of $ 42,085 and was heavily revised thereafter.
However, a decline in Bitcoin to $ 42,000 to retest the previous spike as a support area wouldn’t necessarily be bearish in the short term.
Whale heaps show similar support
Additionally, Whalemap analysts noted large inflows into whale wallets of $ 48,500 and $ 46,500, which they believe should provide some support to BTC.
“The current situation looks similar to 29 km,” they explained. Additionally, the $ 46,532 level could now be “the new $ 29,000” that was support during the previous correction in January prior to the rally resuming. They added:
The $ 55,400 is an important level to keep an eye on as well. It will be a good sign to get over it againWhale Cluster Levels. Source: Twitter / @ whale_map
The most compelling argument for a short-term Bitcoin decline
Bitcoin tends to seek liquidity after a longer period of consolidation, meaning it can fall down to fulfill buy orders in areas of lower support that can ultimately trigger a new rally.
A pseudonymous trader named “Salsa Tekila” repeated this feeling. He said there is a large area of support at $ 41,000 followed by resistance at $ 54,000. He wrote:
“My current take on BTC in the medium term: 1) support around USD 41,000. 2) resistance around USD 54,000. Depending on the context, I can trigger fluctuations in these two environments. Until then, probably only scalp, unless major events occur.”
Bitcoin tested the $ 44,800 support level for the past 72 hours, but it wasn’t enough to push BTC above $ 51,600.
This trend could cause the price of Bitcoin to drop back to the $ 44,800 level or a lower support level of $ 42,000.
The ideal scenario would be for Bitcoin to maintain the USD 44,800 support area if it falls again, stabilizes it as a macro support level, and then goes back up.
