- Bitcoin has seen a correction from $48,200 to $44,00 in the last 24 hours, which had some worried
- However, in the process it has flipped a crucial resistance area into support
- Other on-chain metrics support the idea that a new rally is incoming
Bitcoin’s correction from $48,200 to $44,000 yesterday had some worried that the recent pump was nothing more than a short term price gain. However, what has in fact occurred is a flip of a key resistance level dating back to early February, with Bitcoin having finally turned this level into support. We take a look at why this is very good news indeed.
Bitcoin Looks Flipping Marvelous
As we can see, since dropping below the $45,000 level at the start of the year, Bitcoin has tried to get back above on several occasions, being rejected each time:
As we reported last week however, the momentum has changed, with sellers exhausted and an accumulation period starting ahead of a new market cycle. This has been reflected in the fact that Bitcoin has not only overcome the $45,00 barrier but the retest has, so far, seen it act as support:
This is incredibly positive for continuation of the new cycle, with Bitcoin holders now able to look at the next areas of resistance, which are around the $50,000 and $56,000 levels:
It’s not just the trading charts where we can see that something is brewing for Bitcoin. Other indicators are also flashing that Bitcoin is in buy territory, with the MACD recently crossing bullish for the first time since July 2021:
When we combine this information with other on-chain data, such as bitcoin leaving exchanges in record amounts, we can be fairly sure that, as long as Bitcoin remains above $45,000 in the short term, the only way, for now, is up.