Despite positive developments such as the approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission, Bitcoin’s price encountered significant rejection, resulting in a notable 17% decline.

However, as the cryptocurrency approaches a crucial support region, there is potential for a renewed bullish movement.

Technical Analysis

By Shayan

The Daily Chart

Analyzing the daily chart, Bitcoin’s attempt to overcome the substantial resistance at $48K was met with rejection, leading to a 17% decline towards a critical support region. It includes the middle boundary of the ascending channel and the pivotal 200-day moving average at $39K, serving as robust support for Bitcoin buyers.

If the retracement persists, the price is anticipated to find support around $39K, possibly triggering a renewed bullish surge. However, an unexpected break below the 200-day moving average could lead to a cascade, flushing out a notable amount of sell-stop orders, resulting in a long-squeeze event.

The 4-Hour Chart

On the 4-hour chart, the rejection from the $48K resistance zone extended, with the price breaking below the lower boundary of the ascending flag, indicating the presence of sellers. However, after a strong breakout, a retracement towards the flag’s lower boundary is underway, potentially completing a pullback. If it happens, the retrace could pave the way for the continuation of Bitcoin’s downward movement in the short term, targeting the static support range of $39K.

Nevertheless, Bitcoin’s mid-term prospects suggest consolidation within the critical price range bounded by the substantial resistance zone at $48K and the decisive support at $39K. Nonetheless, a successful breakout from this zone will shed light on the cryptocurrency’s next impulsive trend.

On-chain Analysis

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