The price recovery, which began on December 21, gave traders optimism. Some analysts interpreted this rally as the start of a new bullish rally and said Bitcoin’s price would soon return above $50000.
However, on the price chart, we see a completely different situation. The bulls managed to bring the price of Bitcoin back above the levels of 47000, 48000 and 49000. However, the pressure increased significantly above 49000. The BTC/USD pair stuck above 49000 and failed to rise above 49400. Today we are seeing a correction in the price of Bitcoin. The price dropped below the level of 49000 and is in the area of 48300 at the time of publication. At the same time, the BTC/USD pair is still trading above the descending channel on the 4 hours chart.
The level of 48000 provides sufficient support for the BTC/USD pair. And most likely the pair will not fall below this level, but will push off to start a new upward movement and rise above the level of 49000 again. If the BTC/USD pair falls below the support of 48000, it will be able to stop the decline in the area of 47500. A movement below this level will lead to deep correction in the area of 46500.
On the other hand, if we see a new move above 49000 and a successful break above the mark of 49000, we will see continued growth towards the resistance 49500. The next important resistance level will be the mark of 50000.
However, it is worth noting that above $50000, we will see the bears activating. Bitcoin holders will start selling their coins purchased above $50000 to recoup their losses. In this case, a new phase of the weakening will be inevitable.