Bitcoin has been doing really well for the past couple of weeks. However, the rally has come to a standstill for now as Bitcoin pulls back from $48.3k. The price of the cryptocurrency is stuck mostly between the $47k and $48k range, and we have seen it struggle to get past the MA 200. On the daily chart, two reversal candles have also formed, which could result in a further correction.
Bitcoin’s price action
Bitcoin is currently trading at $47.3k, but after yesterday’s correction from $48k, it made a bottom at $46.5k. As expected, this was the first support on the downside, and it held strong pushing the price back to mid $47k again. However, multiple corrections could break down the control of the bulls, and we might see Bitcoin trace back lower.
In the daily chart, you can see two hammer candles being formed, which are often seen as a reversal pattern. The case is different here, but unless we break $48.3k, the chances of falling further remain. The 23.6% fib retracement level shows a swing low at $44.5k and a $48.2k high. So, we do have a lot of resistance on the move up. No doubt that the price has been stuck there for a couple of days now.
If a strong pullback happens where $46.5k is also broken, we will look at $46k-$46.3k as the following support from the trendline. It is essential that the bullish trendline stays intact as it is. Taking a look at the upside potential, we need strong volume at $48.3k. If it breaks, the next resistance would be at $49k and $50k. All in all, breaking the 200-day Moving average will solidify the fact that we are still in a bull market.
Altcoins
Even though Bitcoin has been stuck between $47k and $48k, altcoins have been showing bullish movement. A lot of them have increased in value in the last 2 days. Luna has made an all-time high and has also crossed Solana by market cap once again. Zilliqa has also started to rally again and has just crossed 11 cents. All eyes are now on Bitcoin; if it breaks $48.3k, alts will explode.
What are your thoughts as Bitcoin pulls back from $48.3k? And where do you think will be the bottom before the price breaks through the MA 200? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Microstrategy takes $205 million in BTC-backed loans to buy more Bitcoins.
