Despite the positive anticipation for SEC approval of Bitcoin spot ETFs, the cryptocurrency faced a significant setback, witnessing a 17% decline from its failed attempt to breach the $48,000 resistance. Approaching a vital support area comprising the mid-line of the rising channel and the crucial 200-day moving average, Bitcoin’s potential for an upward rebound is being closely monitored.
If the pullback persists, there’s a chance for support around $39,000, potentially initiating a new upward trend. However, a breach below the 200-day moving average might trigger a cascade of sell-stop orders, leading to an extended compression event.
On the 4-hour chart, the resistance at $48,000 persists, with the price breaking below the lower boundary of the rising flag, signaling the presence of sellers. Continued retesting towards the flag’s lower boundary could complete a potential pullback.
This pullback could set the stage for a short-term downward movement, targeting the $39,000 static support range. Yet, Bitcoin’s medium-term outlook suggests consolidation within the critical range of $48,000 resistance and $39,000 support. A successful exit from this zone might indicate the cryptocurrency’s next bullish trend, potentially resuming its upward trajectory after the current correction phase.
