After a relatively calm start of January and sideways movement, the Bitcoin price unexpectedly dropped below $46000 and showed a deep correction. The price dropped to the support area of 43000 where the bulls tried to stop further decline. However, they failed, and the price of Bitcoin dropped below $42000. At the time of publication, the price of Bitcoin is traded at 41600.
Over the weekend, the bears tried to push the Bitcoin price closer to the psychological level of $40000, but they met a lot of resistance in this area. Thanks to this, we did not see the Bitcoin price drop below $40000 and the start of another major sell-off.
The BTC/USD pair is currently trading in the area of September lows and any successful test of the $40000 support could lead to a serious decline.
On the hourly chart of the BTC/USD pair, a short-term price channel is forming, which is limited by the levels of 40900 and 42750. And the BTC/USD pair is trading below the center line of the channel, aiming at the lower border of the price channel. Therefore, the level of 41650 provides important support for the pair in the current situation. A breakdown of this channel downward will provoke a movement of the BTC/USD pair to the area of 41000. If the bears manage to lower the price below the lower border of the price channel, the BTC/USD pair may fall to the psychological level of 40000.
If the BTC/USD pair manages to hold above the level of 41650, we can expect a move to the area of 42250. However, it is worth noting that the bulls will face strong resistance in the 43000 area. A move above this level could be the beginning of a recovery in the Bitcoin price. However, analysts pay attention to the level of 46200 and call it the resistance level of the entire corrective movement.